Principles of Marketing Exam 2 Chapters 5-8 – Flashcards

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Global Market
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Marketing that Targets markets throughout the world
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Global Vision
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Recognizing and reactions to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets.
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Multinational Corporation
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A company that is heavily engaged in international trade, beyond exporting and importing.
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Capital-Intensive
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Using more capital than labor in the product process
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Global Marketing Standardization
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Production of uniform products that can be sold the same way all over the world.
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European Union
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A free trade zone encompassing 27 European Countries
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Mercosur
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The largest Latin American Trade agreement; includes Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela.
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Uruguay Round
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An agreement to dramatically lower trade barriers worldwide; created the World Trade Organization.
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World Trade Organization (WTO)
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A trade organization that replaced the old General Agreement on Tariffs and Trade. (GATT)
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General Agreement on Tariffs and Trade (GATT)
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A trade agreement that contained loopholes that enabled countries to avoid trade-barrier reduction agreements.
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North American Free Trade Agreement (NAFTA)
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An agreement between Canada, the United States, and Mexico that created the world's largest free trade zone.
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Central America Free Trade Agreement (CAFTA)
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a trade agreement, instituted in 2005, that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States.
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Wold Bank
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An international bank that offers low-interest loans, advice, and information to developing nations.
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International Monetary Fund (IMF)
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An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation.
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Exporting
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selling domestically produced products to buyers in another country.
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Buyer for Export
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An intermediary in the global market that assumes all ownership risks and sells globally for its own account
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Export broker
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An intermediary who plays the traditional broker's role by brining buyer and seller together.
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licensing
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The legal process whereby a licensor agrees to let another firm use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.
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Contract Manufacturing
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Private-label manufacturing by a foreign company.
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Joint Venture
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When a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity.
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Direct Foreign Investment
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Active ownership of a foreign company or of overseas manufacturing or marketing facilities.
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Floating exchange rates
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Prices of different currencies move up and down based on the demand for and the supply of each currency.
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Dumping
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The sale of an exported product at a price lower than that charged for the same or a like product in "home" market of the exporter.
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Countertrade
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A form of trade in which all or part of the payment for goods or services is in the form of other goods or services.
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Consumer Behavior
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Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.
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Consumer Decision-Making process
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A 5 step process used by consumers when buying goods or services.
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Need Recognition
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Result of an imbalance between actual and desired states.
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Want
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The way a consumer goes about addressing a need.
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Stimulus
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Any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing.
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Internal Information Search
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The process of recalling past information stored in the memory.
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External Information Search
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The process of seeking information in the outside environment.
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Non marketing-Controlled Information Source
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A product information source the tis not associated with advertising or promotion.
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Marketing-Controlled Information Source
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A product information source that originates with marketers promoting the product.
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Evoked Set (Consideration Set)
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A group of brands, resulting from an information search, from which a buyer can choose.
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Brand Extensions
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A well-known and respected brand name from one product category is extended into other product categories.
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Cognitive Dissonance
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Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.
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Involvement
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the amount of time and effort a buyer invests in the search, evaluation and decision processes of consumer behavior.
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Routine Response behavior
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The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time.
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Limited decision making
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They type of decision making that require a moderate amount of time for gather information and deliberating about an unfamiliar brand in a familiar product category.
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Extensive decision making
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The most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information.
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Culture
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the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts or products of that behavior s they are transmitted from one generation to the next.
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Value
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The enduring belief that a specific mod of conduct is personally or socially preferable to another mode of conduct.
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Subculture
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A homogeneous group of people who share elements of the overall culture as well as unique elements of their own group.
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Social Class
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A group of people in a society who are considered nearly equal in statues or community esteem, who regularly socialize among themselves both formally an informally, and who share behavioral norms.
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Reference group
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A group in society that influences an individual's purchasing behavior.
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Primary Membership Group
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A reference group with which people interact regularly in an informal, face to face manner, such as family, friends, or fellow employees
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Secondary Membership Group
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A reference group with which people associate less consistency and more formally than a primary membership group, such as a club, professional group, or religious group.
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Aspirational Reference Group
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A group that someone would like to join.
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Norm
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A value or attitude deemed acceptable by a group.
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Non Aspirational Reference group
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A group with which an individual does not want to associate.
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Opinion Leader
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An individual who influences the opinions of others.
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Socialization Process
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How cultural values and norms are passed down to children.
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Personality
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A way of organizing and grouping the consistencies of an individuals reactions to situations.
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Self-Concept
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How consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations.
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Ideal Self-Image
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The way an individual would like to be.
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Real Self-Image
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The way an individual actually perceives himself or herself.
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Lifestyle
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A mode of living as identified by a person's activities, interest, and opinions.
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Perception
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The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture.
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Selective exposure
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The process whereby a consumer notices certain stimuli and ignores others.
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Selective Distortion
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A process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs.
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Selective retention
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A process whereby a consumer remembers on the information that supports his or her personal beliefs.
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Threshold level of perception
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The minim difference in a stimulus that a consumer will notice.
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Motive
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A driving force that causes a person to take action to satisfy specific needs
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Maslows hierarchy of needs
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A method classifying human needs and motivations into 5 categories in ascending order of importance. Physiological Safety Social Esteem Self Actualization
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Learning
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A process that creates change in behavior,immediate or expected through experience and practice.
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Stimulis Generalization
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A form of learning that occurs when one response is extended to a second stimulus similar to the first.
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Stimulus discriminaton
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A learned ability to differentiate around similar products
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Belief
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An organized patter of knowledge that an individual holds as true about his or her world.
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Attitude
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A learned tendency to respond consistent toward a given object
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Business Marketing
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The marketing of goods and services to individuals and organizations for purposes other than personal consumption.
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Business-To-Buisness Electronic Commerce
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The use of internet to facilitate the exchange of goods, services, and information between organizations.
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Stickiness
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A measure of a Web site's effectiveness; ca;via;ted by multiplying the frequency of visit times the duration of visit times and the number of pages viewed during each visit. (Site Reach)
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Disintermediation
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The elimination of intermediaries such as wholesalers or distributors from a marketing channel.
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Reintermediation
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the re-introduciton of an intermediary between producers and users.
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Strategic Alliance (strategic partnership)
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A cooperative agreement between business firms.
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Relationship Commitment
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A firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintains it indefinitely
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Trust
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The condition that exists when one party has confidence in an exchanged partner's reliability and integrity
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Keiretsu
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A network of interlocking corporate affiliates.
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Original Equipment Manufactures
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Individuals and organizations that buy business goods and incorporate them into products that they produce for eventual sale to other producers or to consumers.
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North American Industry Classification System (NAICS)
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A detailed numbering system developed by the United States, Canada, and Mexico to classify establishment by their main production processes.
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Derived Demand
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The demand for business products.
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Joint Demand
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The Demand for two or more items used together in a final product
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Multiplier effect (accelerator principle)
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Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make consumer product..
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Business-to-Business Online Exchange
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An electronic trading floor that provides companies with integrated links to their customers and suppliers.
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Reciprocity
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The practice of business purchaser choosing to buy from their own customers.
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Major equipment (installations)
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Capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings.
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Accessory equipment
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Goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment.
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Raw Materials
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Unprocessed extractive or agricultural produce, such as mineral ore, timber, where, corn, fruits, vegetables, and fish.
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Component parts
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Either finished items ready for assembly of products that need very little procession before becoming part of some other product.
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Processed Materials
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Products used directly in manufacturing other products.
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Supplies
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Consumable items that do not become part of the final product.
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Business services
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Expense items that do not become par of a final product.
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Buying Center
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All those persons in an organization ho become involved in the purchase decision.
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New Buy
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A situation requiring the purchase of a product of the first time.
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Modified rebuy
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A situation where the purchaser wants some change in the original good or service.
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Straight Rebuy
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A situation in which the purchaser reorders the same goods or services with our looking for new information or investigating other suppliers.
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Market
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People or organizations with needs or wants and the ability and willingness to buy.
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Market segment
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A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.
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Market Segmentation
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The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups.
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Segment Bases (Variables)
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Characteristics of individuals groups or organizations
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Geographic segmentation
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Segmenting markets by region of a country or the world, market size, market density, or climate.
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Demographic Segmentation
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Segmenting markets by age, gender, income, ethnic background, and family life cycle.
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Family Life Cycle (FLC)
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A series of stages determined by a combination of age, marital status. and the presence of absence of children.
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Psychographic Segmentation
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Market segmentation on the basis of personalty, motives, lifestyles and geodemographics.
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Geodemographic Segmentation.
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Segmenting potential customers into neighborhood lifestyle categories.
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Benefit Segmentation
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The process of grouping customers into market segments according to the benefit they seek from the product.
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Usage-Rate Segmentation
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Dividing a market by the amount of product bought or consumed
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80/20 Principle
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A principle holding that 20 percent of all customers generate 80 percent of the demand.
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Satisficers
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Business customers who place on order with the first familiar supplier to ratify product and delivery requirements.
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Optimizers
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Business Customers who consider numerous suppliers, both familiar and unfamiliar, solicit bids, and study all proposals carefully before selection one.
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Target Market
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A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges
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Undifferentiated target strategy
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A marketing approach that vies the market as one big market with no individual segments and thus uses a single marketing mix.
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Concentrated Targeting Strategy
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A strategy used to select one segment of a market for targeting marketing efforts.
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Niche
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One segment of a market
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Multisegment Targeting Strategy
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A strategy that chooses 2 or more well-defined market segments and develops a distinct marketing mix for each.
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Cannibalization
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A situation that occurs when sales of a new product cut into sales of a firms exiting products.
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One-to-One Marketing
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An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer.
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Positioning
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Developing a specific marketing mix to influence potential customers' overall perception of a rand product line, or organization in fern.
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Position
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The place a product, brand or group of products occupies in consumers' minds relative to competing offerings.
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Product differentiation
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A positioning strategy that some firms uses to distinguish their products from those of competitors.
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Repositioning
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Changing consumers' perceptions of a brand in relation to competing brands.
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Perceptual Mapping
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A means of displaying or graphing in 2 or more dimensions, the location of products, brands, or groups of products in customers' minds.
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