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Marketing 3104 Exam 1

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What is Marketing?
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The activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customer, clients, partners, and society at large
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To serve both buyers and sellers, marketing seeks…
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to discover the needs and wants of prospective customers AND to satisfy them
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Exchange
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The trade of things of value between a buyer and a seller so that each is better off after the trade
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What is needed for marketing to occur?
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1. Two or more parties with unsatisfied needs 2. Desire and ability to satisfy these needs 3. A way for the parties to communicate 4. Something to exchange
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What do you focus on to make a new product successful?
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1. what the customer benefit is 2. learn from the past
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Needs vs. Wants
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a NEED occurs when a person feels deprived of basic necessities such as food, clothing or shelter. a WANT is a need that is shaped by a persons knowledge, culture, and personality.
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What is a market?
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people with the desire and the ability to buy a specific offering. Simply put “potential consumers”
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What is the marketing mix? (Hint: the 4 “P”s)
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Product, Price, Promotion, Place These are the controllable factors that the marketing manager can use to solve a marketing problem
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Define Target Market
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one or more specific groups of potential consumers toward which an organization directs its marketing program
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Customer Value Proposition
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A cluster of benefits that an organization promises customers to satisfy their needs
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Environmental Forces
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the uncontrollable social, economic, technological, competitive, and regulatory forces that affect the results of a marketing decision.
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Customer Value
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Buyers’ benefits, including quality, convenience, on-time delivery, and before-and-after-sale service at a specific place.
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Relationship Marketing
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linking the organization to its individual customers, employees, suppliers, and other partners for their long term mutual benefit
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Marketing Program
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A plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers.
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Define the Marketing Concept
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1) an organization should strive to satisfy the needs of consumers while also trying to 2) achieve the organization’s goals.
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Market Orientation
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focusing organizational efforts to collect and use information about customers’ needs to create customer value
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Define Societal Marketing Concept
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organizations should satisfy the needs of a consumer in a way that also provides for a society’s well-being
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Define “Product”
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a good, service, or idea consisting of a bundle of tangible and intangible attributes that satisfies consumers’ needs and is received in exchange for money or something else of value
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What are ultimate consumers?
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the people who use the products and services purchased for a household. I.E. end users, the final consumer
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What are organizational buyers?
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manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale
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Define “Utility”
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the benefits or customer value received by users of the product
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Environmental Scanning
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the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends. 3 Components : Social Forces, Economy, Technology
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Demographics
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describing a population according to selected characteristics such as age, gender, ethnicity, income and occupation
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Generation X
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includes the 15 percent of the population born between 1965 and 1976 (decreasing births)
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Generation Y
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millennials, including the 72 million Americans born between 1977 and 1994 (increasing births)
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What is Multicultural Marketing?
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combinations of the marketing mix that reflects the unique attitudes, ancestry, communication preferences and lifestyles of different races and ethnic groups
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Culture
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The set of values, ideas and attitudes that are learned and shared among the members of a group
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Economy
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the income, expenditures and resources that affect the cost of running a business and household
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Technology
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the third environmental force, refers to inventions or innovations from applied science or engineering research
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Baby Boomers
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the generation of children born between 1946 and 1964
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Disposable Income
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money left over after paying for taxes to use for necessities such as food, housing, clothing, and transporation
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Discretionary Income
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money that remains after paying for taxes and necessities. Used for luxury items
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Marketspace
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an information and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings
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Competition
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the alternative firms that could provide a product to satisfy a specific market’s needs
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Regulation
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restrictions state and federal laws place on business with regard to the conduct of its activities
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Consumerism
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a grassroots movement started in the 1960’s to increase the influence, power and rights of consumers in dealing with institutions
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Self-regulation
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an industry attempts to police itself
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Ethics
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moral principles and values that govern the actions and decisions of an individual or group
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Consumer Bill of Rights
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Codified the ethics of exchange between buyers and sellers, including rights to safety, to be informed, to choose, and to be heard.
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Code of Ethics
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a formal statement of ethical principles and rules of conduct
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Moral Idealism
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a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome
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Utilitarianism
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a personal moral philosophy that focuses on the greatest good for the greatest number
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Social Responsibility
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means that organizations are part of a larger society and are accountable to that society for their actions
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Green Marketing
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marketing efforts to produce, promote and reclaim environment mentally sensitive products—takes many forms
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Cause Marketing
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occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
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Consumer Behavior
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the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions
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Purchase decision process
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the stages a buyer passes through in making choices about which products and services to buy. Has five stages: 1) problem recognition 2) information search 3) alternative evaluation 4) purchase decision 5) post purchase behavior
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Involvement
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the personal, social and economic significance of the purchase to the consumer
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Motivation
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the energizing force that stimulates behavior to satisfy a need
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Personality
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refers to a person’s consistent behaviors or responses to recurring situations
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Perceived Risk
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anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences
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Perception
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the process by which an individual selects, organizes and interprets information to create a meaningful picture of the world
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Learning
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refers to those behaviors that result from repeated experience and reasoning
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Brand loyalty
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a favorable attitude toward and consistent purchase of a single brand over time
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Attitude
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learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way
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Beliefs
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a consumer’s subjective perception of how a product or brand performs on different attributes
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Cognitive Dissonance
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feeling of post-purchase anxiety, wondering if you bought the right thing or not
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Opinion Leaders
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individuals who exert direct or indirect social influence over others
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Word of Mouth
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the influencing of people during conversations
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Reference Groups
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people to whom an individual looks as a basis for self-appraisal or as a source of personal standards
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Family Life Cycle
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describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable contemporary variations of the family life cycle
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Subcultures
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subgroups within the larger, or national, culture with unique values, ideas and attitudes
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Business Marketing
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the marketing of products and services to companies, governments or nonprofit organizations for use in the creating of goods and services that they can produce and market to others
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Organizational buyers
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manufacturers, wholesalers, retailers and governemtn agencies that buy products and services for their own use or for resale
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North American Industry Classification System (NAICS)
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provides common industry definitions for Canada, Mexico and the United States, which makes it easier to measure economic activity in the three member countries of the NAFTA
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Derived Demand
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the demand for industrial products and services is driven by, or derived from, demand for consumer products and services
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Organizational buying behavior
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the decision-making process that organizations use to establish the need for products and services and identify, evaluate and choose among alternative brands and suppliers
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Buying Center
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the individuals in this group share common goals, risks and knowledge important to a purchase decision
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Buy Classes
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researchers who have studied organizational buying identify three types of buying situations
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E-Marketplaces
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Online trading communities
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Traditional Auction
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a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other
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Reverse Aution
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a buyer communicates a need for a product or services and would-be suppliers are invited to bid in competition with each other
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Protectionism
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the practice of shielding one or more industries within a country’s economy from foreign competition, usually through the use of tariffs or quotas
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Tariff
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a tax on goods or services entering a country
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Quota
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a restriction placed on the amount of a product allowed to enter or leave a country
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World Trade Organization
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addresses a broad array of world trade issues
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Global Competition
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exists when firms originate, produce and market their products and services worldwide
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Multi-domestic Marketing Strategy
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means that they have as many different product variations, brand names and advertising programs as countries in which they do business
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Global Marketing Strategy
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the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differs
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Global Brand
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a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
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Global Consumers
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Consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services
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Global Consumers
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Consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services
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Cross-cultural analysis
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involves the study of similarities and differences among consumers in two or more nations or societies
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Values
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represent personally or socially preferable modes of conduct or states of existence that tend to persist over time
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Customs
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the normal and expected ways of doing things in a specific country
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Foreign Corrupt Practices Act (1977)
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amended by the international anti-dumping and fair competition act
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Back Translation
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a translated word or phrase is retranslated into the original language by a different interpreter to catch errors
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Microfinance
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the practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income generating activities
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Currency Exchange Rate
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the prices of one country’s currency expressed in terms of another country’s currency
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Exporting
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producing goods in one country and selling them in another country
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Joint Venture
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when a foreign company and a local firm invest together to create a local business
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Business/industrial markets
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7.7 million, Building products (Original Equipment Manufacturer, OEM’s) & Conducting business practices (Maintenance Repairers Operators, MRO’s)
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Reseller Markets
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1.5 Million, wholesalers and retailers as middlemen
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government markets
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Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies. biggest customer in the US
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institutional markets
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organizations with charitable, educational, community, or other nonbusiness goals. low budget, rely on marketer’s expertise
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Business to Consumer vs Business to Business
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Business to Consumer: pleasing one person, many end consumers, sales lower in quanitty and price, geographic dispersion Business to Business: pleasing many people, fewer org. customers, sales high in quantity and price, geographic concentration
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derived demand
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the demand for industrial products and services is driven by, or derived from, demand for consumer products and services
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inelastic demand
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A situation in which an increase or a decrease in price will not significantly affect demand for the product
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fluctuating demand
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small changes in consumer demand, large changes in B2B demand
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joint demand
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demand for one product/component is affected by availability of another product
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New Buy
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In a B2B setting, a purchase of a good or service for the first time; the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item.
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straight re-buy
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A buying situation in which business buyers make routine purchases that require minimal decision making. re-buy the same product from a pre-approved vendor. The choice of vendor, delivery specs, and price may change though, but not the product. focus on lowest price
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modified re-buy
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there is some change to the mix desired. generally relies on current suppliers and involves a purchasing agent along with other helpers
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The Formal Buying Process
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most likely for a new buy situation with a variable number of steps: 1. problem recognition: general need description and product specification 2. information search: supplier search and proposal solicitation 3. evaluation of alternatives 4. product and supplier selection 5. post-purchase evaluation
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Organizational Buying Online
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internet effects on stage-related behaviors: as content source for information gathering, as communications resource for negotiation & as channel resource for aspects of trade settlement
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types of B2B intermediaries
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Consortia-let exchanges: companies share ownership & form strategic alliance proprietary exchanges: privately owned & integrates buying/selling activities of the supply chain members third-party exchanges: market-makers who are not owners
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Market Penetration
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the extent to which a product is recognized and bought by customers in a particular market