Chapter 5-7 Marketing

Front 1

Global Marketing

Back 1

marketing that targets markets throughout the world.

Front 2

Global Vision

Back 2

Recognizing and reacting to international marketing opportunities, using effective global marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets.

Front 3

Gross Domestic Product (GDP)

Back 3

The total market value of all final goods and services produced in a country for a given time period.

Front 4

Capital Intensive

Back 4

Using more capital than labor in the production process.

Front 5

Global Marketing Standardization

Back 5

Production of uniform products that can be sold the same way all over the world.

Front 6

Multidomestic Strategy

Back 6

When multinational firms enable individual subsidiaries to complete independently to domestic markets.

Front 7

General Agreement on Tariffs & Trade (GATT)

Back 7

A trade agreement that contained loopholes enabling countries to avoid trade barrier reduction agreements.

Front 8

World Trade Organization (WTO)

Back 8

A trade organization that replaced the old General Agreement on Tariffs and Trade (GATT).

Front 9

Greenfield

Back 9

Going to foreign countries and starting them from the ground up.

Front 10

Outsourcing

Back 10

Sending U.S. jobs abroad

Front 11

Inshoring

Back 11

Returning production jobs to the United States

Front 12

Multinational Corporation

Back 12

A company that is heavily engaged in international trade, beyond exporting and importing

Front 13

Exporting

Back 13

Selling domestically produced products to buyers in other countries.

Front 14

Buyer for Export

Back 14

An intermediary in the global market that assumes all ownership risks and sells globally for its own account.

Front 15

Export Broker

Back 15

An intermediary who plays the traditional broker's role by bringing buyer and seller together.

Front 16

Export Agent

Back 16

An intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in a foreign market.

Front 17

Licensing

Back 17

The legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge.

Front 18

Contract Manufacturing

Back 18

Private label manufacturing by a foreign company.

Front 19

Joint Venture

Back 19

When a domestic firm buys part of a foreign company or joins with a foreign company to creat a new entity.

Front 20

Direct Foreign Investment

Back 20

Active ownership of a foreign company or of overseas manufacturing or marketing facilities.

Front 21

Floating Exchange Rates

Back 21

A system in which prices of different currencies move up and down based on the demand for and the supply of each currency.

Front 22

Dumping

Back 22

The sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter.

Front 23

Countertrade

Back 23

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.

Front 24

Consumer Behavior

Back 24

Processes a consumer uses to make a purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use.

Front 25

Consumer decision-making Process

Back 25

A five-step process used nu consumers when buying goods or services.

Front 26

Need Recognition

Back 26

Results of an imbalance between actual and desires states.

Front 27

Want

Back 27

Recognition of an unfulfilled need and a product that will satisfy it.

Front 28

Stimulus

Back 28

Any unit of input affecting one or more of the five senses: sight, smell, taste, touch, hearing

Front 29

Nonmarketing-Controlled Information Source

Back 29

A product information source that is not associated with advertising or promotion.

Front 30

Marketing-Controlled Information Source

Back 30

A product information source that originates with marketers promoting the product.

Front 31

Evoked set (Consideration Set)

Back 31

A group of brands resulting from an information search from which a buyer can choose.

Front 32

Five Steps of the Consumer Decision Making Process

Back 32

1) Need Recognition

2) Information Search

3) Evaluation of Alternatives

4) Purchase

5) Postpurchase Behavior

Front 33

Cognitive Dissonance

Back 33

Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions.

Front 34

Involvement

Back 34

The amount of time and effort a buyer invests in the search, evaluation, and decision process of consumer behavior.

Front 35

Routine Response Behavior

Back 35

The type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time.

Front 36

Limited Decision Making

Back 36

The type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category.

Front 37

Extensive Decision-Making

Back 37

The most complex type of consumer decision-making, used when buying an unfamiliar, expensive product of an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information.

Front 38

Showrooming

Back 38

The practice of examining merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item.

Front 39

Reference Group

Back 39

All of the formal and informal groups in society that influence an individual's purchasing power.

Front 40

Rights View

Back 40

"Does the consumer reserve the right to know that this is an inferior good than what they are expecting?"

Front 41

Maslow's Hierarchy of Needs

Back 41

A popular theory about what drives people's particular needs at particular times; it arranges needs in ascending order of importance: physiological, safety, social, esteem, and self-actualization.

Front 42

Buisness Marketing (Industrial, B2B)

Back 42

The marketing of goods and services to individuals or organizations for purposes other than personal consumption.

Front 43

Business Product (Industrial Product)

Back 43

A product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers.

Front 44

Consumer Product

Back 44

A product bought to satisfy an individual's personal wants or needs.

Front 45

Stickiness

Back 45

A measurement of a web site's effectiveness; calculated by multiplying the frequency of visits by the number of pages viewed during each visit (site reach)

Stickiness = # of visits x # of pages viewed during each visit

Front 46

Strategic Alliance/Partnership

Back 46

A cooperative agreement between business firms.

Front 47

Keiretsu

Back 47

A network of interlocking corporate affilliates

Front 48

Original Equipment Manufacturers (OEMs)

Back 48

Individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers.

Front 49

North American Industry Classification System (NAICS)

Back 49

A detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes.

Front 50

Derived demand

Back 50

The demand for business products.

Front 51

Joint Demand

Back 51

The demand for two or more items used together in a final product. Example: peanut butter AND jelly to make a PB&J Sandwich.

Front 52

Multiplier Effect (Accelerator Principle)

Back 52

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 the consumer product.

Front 53

Reciprocity

Back 53

A practice whereby business purchasers choose to buy from their own customers. Example: ABCD Electric Company does the electrical work for Hudson Ford. Therefore, ABCD buys all of their work trucks from Hudson Ford.

Front 54

Major Equipment (Installations)

Back 54

Capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings.

Front 55

Accessory Equipment

Back 55

Goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment.

Front 56

Raw Materials

Back 56

Unprocessed extractive or agricultural products. Examples: mineral ore, lumber, wheat, corn, fruits, vegetables, and fish, etc.).

Front 57

Component Parts

Back 57

Either finished items ready for assembly or products that need very little processing before becoming part of some other product.

Front 58

Processed Materials

Back 58

Products used directly in manufacturing other products.

Front 59

New Buy

Back 59

A situation in which the purchaser wants come change in the original good or service.

Front 60

Straight Rebuy

Back 60

A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.