Principles of Marketing Exam 2 Chapters 5-8

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