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Marketing Exam Chapter 1-4

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Value
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The benefits a customer receives from buying a good or service
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Marketing
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An organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders
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Consumer
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The ultimate user of a good or service
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Marketing Concept
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A management orientation that focuses on identifying and satisfying consumer needs to ensure the organizations long-term profitability
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Need
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The recognition of any difference between a consumers actual state and some ideal or desired state
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Want
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The desire to satisfy needs in specific ways that are culturally and socially influenced
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Benefit
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The outcome sought by a customer that motivates buying behavior–that satisfies a need or want
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Demand
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Customers desires for products coupled with the resources needed to obtain them
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Market
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All the customers and potential customers who share a common need that can be satisfied by a specific product, who have the resources to exchange for it, who are willing to make the exchange, and who have the authority to make the exchange
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Marketplace
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Any location or medium used to conduct an exchange
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Virtual Goods
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Digital products consumers buy for use in online contexts
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Utility
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The usefulness or benefit consumers receive from a product
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Exchange
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The process by which some transfer of value occurs between a buyer and a seller
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Product
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A tangible good, service, idea, or some combination of these that satisfies consumer or business customer needs through the exchange process; a bundle of attributes including features, functions, benefits, and uses
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Production Orientation
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A management philosophy that emphasizes the most efficient ways to produce and distribute products
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Selling Orientation
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A managerial view of marketing as a sales function, or a way to move products out of warehouses to reduce inventory
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Consumer Orientation
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A business approach that prioritizes the satisfaction of customers needs and wants
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Total Quality Management (TQM)
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A management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement
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Instapreneur
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A businessperson who only produces a product when it is ordered
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Triple Bottom Line Orientation
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A business orientation that looks at financial profits, the community in which the organization operates, and creating sustainable business practices
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Customer Relationship Management (CRM)
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A systematic tracking of consumers preferences and behaviors over time in order to tailor the value proposition as closely as possible to each individuals unique wants and needs. CRM allows firms to talk to individual customers and to adjust elements of their marketing programs in light of how each customer reacts
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Attention Economy
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A company’s success is measured by its share of mind rather than share of market, where companies make money when they attract eyeballs rather than just dollars
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Social Marketing Concept
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A management philosophy that marketers must satisfy customers’ needs in ways that also benefit society and also deliver profit to the firm
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Sustainability
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A product design focus that seeks to create products that meet present consumer needs without compromising the ability of future generations to meet their needs
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Green Marketing
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A marketing strategy that supports environment stewardship, thus creating a differential benefit in the minds of consumers
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Return On Investment (ROI)
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The direct financial impact of a firms expenditure of a resource such as time or money
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Popular Culture
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The music, movies, sports, books, celebrities, and other forms of entertainment consumed by the mass market
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Consumer Goods
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The goods individuals consumers purchase for personal or family use
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Services
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Intangible products that are exchanged directly between the producer and the customer
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Business-to-Business Marketing
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The marketing of goods and services from one organization to another
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Industrial Goods
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Goods individuals or organizations buy for further processing or for their own use when they do business
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E-Commerce
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The buying and selling of goods and services electronically, usually over the internet
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Shrinkage
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Losses experienced by retailers due to shoplifting, employee theft, and damage to merchandise
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Anticonsumption
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The deliberate defacement of products
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Not-for-Profit Organizations
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Organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members
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Value Proposition
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A marketplace offering that fairly and accurately sums up the value that will be realized if the good or service is purchased
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Lifetime Value of a Customer
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The potential profit a single customer’s purchase of a firm’s products generates over the customer’s lifetime
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Distinctive Competency
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A superior capability of a firm in comparison to its direct competitors
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Differential Benefit
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Properties of products that set them apart from competitors’ products by providing unique customer benefits
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Value Chain
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A series of activities involved in designing, producing, marketing, delivering, and supporting any product. Each link in the chain has the potential to either add or remove value from the product the customer eventually buys
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Marketing Scorecards
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Feedback vehicles that report (often in quantified terms) how the company or brand is actually doing in achieving various goals
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Metrics
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Measurements or “scorecards” marketers use to identify the effectiveness of different strategies or tactics.
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Amafessionals
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Consumers who contribute ideas to online forums for the fun and challenge rather than to receive a paycheck, so their motivation is to gain psychic income rather than financial income
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Consumer-Generated Content
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Everyday people functioning in marketing roles, such as participating in creating advertisements, providing input to new product development, or serving as wholesalers or retailers
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Social Networking
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Online platforms that allow a user to represent him or herself via a profile on a web site and provide and receive links to other members of the network to share input about common interests
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Physical URLs
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New apps that enable user-generated clouds of content to form around products; barcode scans allow the user to upload content or see what others have already uploaded
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Folksonomy
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A classification system that relied on users rather than preestablished systems to sort contents
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Wisdom of Crowds
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Under the right circumstances, groups are smarter than the smarted people in them, meaning that large numbers of consumers can predict successful products
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Open Source Model
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A practice used in the software industry in which companies share their software codes with one another to assist in the development of a better product
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Marketing Plan
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A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
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Mass Market
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All possible customers in a market, regardless of the differences in their specific needs and wants
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Market Segment
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A distinct group of customers within a larger market who are similar to one another in some way and whose needs differ from other customers in the larger market
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Target Market
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The market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts
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Market Position
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The way in which the target market perceives the product in comparison to competitors’ brands
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Marketing Mix
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A combination of the product itself, the price of the product, the place where it is made available, and the activities that introduce it to consumers that creates a desired response among a set of predefined consumers
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Price
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The assignment of value, or the amount the consumer must exchange to receive the offering
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Promotion
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The coordination of a marketer’s communication efforts to influence attitudes or behavior
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Place
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The availability of the product to the customer at the desired time and location
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Business Planning
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An ongoing process of making decisions that guides the firm both in the short term and for the long term
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Business Plan
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A plan that includes the decisions that guide the entire organization
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Marketing Plan
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A document that describes the marketing environment, outlines the marketing objectives and strategy, and identifies who will be responsible for carrying out each part of the marketing strategy
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Business Ethics
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Rules of conduct for an organization
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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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Strategic Planning
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A managerial decision process that matches an organization’s resources and capabilities to its market opportunities for long-term growth and survival
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Strategic Business Units (SBUs)
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Individual units within the firm that operate like separate businesses, with each having its own mission, business objectives, resources, managers, and competitors
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Functional Planning
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A decision process that concentrates on developing detailed plans for strategies and tactics for the short term, supporting an organization’s long-term strategic plan
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Operational Planning
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A decision process that focuses on developing detailed plans for day-to-day activities that carry out an organization’s functional plan
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Mission Statement
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A formal statement in an organization’s strategic plan that describes the overall purpose of the organization and what it intends to achieve in terms of its customers, products, and resources
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Situation Analysis
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An assessment of a firm’s internal and external environments
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Internal Environment
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The controllable elements inside an organization, including its people, its facilities, and how it does things that influence the operations of the organization
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External Environment
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The uncontrollable elements outside an organization that may affect its performance either positively or negatively
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SWOT Analysis
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An analysis of an organization’s strengths and weaknesses and the opportunities and threats in its external environment
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Business Portfolio
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The group of different products or brands owned by an organization and characterized by different income-generating and growth capabilities
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Portfolio Analysis
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A management tool for evaluating a firm’s business mix and assessing the potential of an organization’s strategic business units
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BCG Growth-Market Share Matrix
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A portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful products to generate cash that a firm can then use to invest in new products
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Stars
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SBUs with products that have a dominant market share in high-growth markets
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Cash Cow
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SBUs with a dominant market share in a low-growth-potential market
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Question Marks
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SBUs with low market shares in fast-growth markets
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Dogs
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SBUs with a small share of a slow-growth market. They are businesses that offer specialized products in limited markets that are not likely to grow quickly
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Market Development Strategies
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Growth strategies that introduce existing products to new markets
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Product Development Strategies
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Growth strategies that focus on selling new products in existing markets
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Diversification Strategies
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Growth strategies that emphasize both new products and new markets
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Control
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A process that entails measuring actual performance, comparing this performance to the established marketing objectives, and then making adjustments to the strategies or objectives on the basis of this analysis
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Return on Marketing Investment (ROMI)
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Quantifying just how an investing in marketing has impact on the firms success, financially and otherwise
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Action Plans
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Individual support plans included in a marketing plan that provide the guidance for implementation and control of the various marketing strategies within the plan. Action plans are sometimes referred to as “marketing programs”
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Operational Plans
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Plans that focus on the day-to-day execution of the marketing plan. Operational plans include detailed directions for the specific activities to be carries out, who will be responsible for them, and time lines for accomplishing the tasks
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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 worlds nations
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Counter-trade
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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 leaving a country
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Tariffs
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Taxes on imported goods
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Gross Domestic Product (GDP)
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The total dollar value of goods and services produced by a nation within its borders in a year
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Gross National Product (GNP)
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A value of all goods and services produced by a country’s citizens or organizations, whether located within the country’s borders or not
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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 economy is shifting its emphasis from agriculture to industry
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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 percent of the world’s population
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Developed Country
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A country that boasts sophisticated marketing systems, strong private enterprise, and bountiful market potential 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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Oligopoly
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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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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 the 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 of 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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Ethnocentrism
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The tendency to prefer products or people of one’s own culture
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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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Export Merchants
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Intermediaries a firm uses to represent it in other countries
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Licensing Agreement
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An agreement in which one firm gives another form the right to produce and market its product in a specific country or region in return for royalties
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Franchising
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A form of licensing involving the right to adapt an entire system of doing business
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Strategic Alliance
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Relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in the target country
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Joint Venture
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A strategic alliance in which a new entity owned by two or more firms allows the partners to pool their resources for common goals
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Straight Extension Strategy
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Product strategy in which a firm offers the same product in both domestic and foreign markets
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Product Adaption Strategy
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Product strategy in which a firm offers a similar but modified product in foreign markets
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Product Invention Strategy
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Product strategy in which a firm develops a new product for foreign markets
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Backward Invention Strategy
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Product strategy in which a firm develops a less advanced product to serve the needs of people living in countries without electricity or other elements of a developed infrastructure
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Free Trade Zones
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Designated areas where foreign companies can warehouse goods without paying taxes or customs duties until they move the goods into the marketplace
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Gray Market Goods
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Items manufactured outside a country and then imported without the consent of the trademark holder
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Dumping
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A company tries to get a toehold in a foreign market by pricing its products lower than it offers them at home
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Marketing Research Ethics
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Taking an ethical and above-broad approach to conducting marketing research that does no harm to the participant in the process of conducting the research
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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 databases
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Marketing Intelligence System
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A method by which marketers get information about everyday happenings in the marketing environment
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Marketing 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
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Research by firms that collect data on a regular basis and sell the reports to multiple firms
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Custom Research
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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, and interactive software that allow managers to conduct analyses and find the information they need
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Data Mining
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Sophisticated analysis techniques to take advantage of the massive amount of transaction information now available
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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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Exploratory Research
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A technique that marketers use to generate insights 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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Casual 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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Telemarketing
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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 area
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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 the Web site sponsor into a Web surfer’s hard drive that allows the site to track the surfer’s move
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Predictive Technology
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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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Validity
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The extent to which research actually measures what it was intended to measure
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Reliability
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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
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The process of selecting respondents for a study
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Probability Sample
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A sample in which each member of the population has some known chance of being included
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Non-probability Sample
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A sample in which personal judgement is used to select respondents
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Convenience Sample
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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
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The process of translating material to a foreign language and then back to the original language