Marketing Terms Ch. 1-6

Front 1

marketing mix

Back 1

Blending of the four strategy elements—product, distribution, promotion, and price—to fit the needs and preferences of a specific target market.

Front 2

SWOT analysis

Back 2

Review that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats.

Front 3

first mover strategy

Back 3

Theory advocating that the company first to offer a product in a marketplace will be the long –term market winner.

Front 4

second mover strategy

Back 4

Theory that advocates observing closely the innovations of first movers and then improving on them to gain advantage in the marketplace.

Front 5

strategic planning

Back 5

Process of anticipating events and market conditions and deciding how a firm can best achieve its organizational objectives

Front 6

market share/market growth matrix

Back 6

Framework that places SBUs on a chart that plots market share against market growth potential.

Front 7

portfolio analysis

Back 7

Evaluation of a company’s products and divisions to determine the strongest and weakest.

Front 8

marketing strategy

Back 8

Overall, company–wide program for selecting a particular target market and then satisfying consumers in that market through the marketing mix.

Front 9

competitive environment

Back 9

Interactive process that occurs in the marketplace among marketers of directly competitive products, marketers of products that can be substituted for one another, and marketers competing for the consumer’s purchasing power.

Front 10

economic environment

Back 10

Factors that influence consumer buying power and marketing strategies, including stage of the business cycle, inflation and deflation, unemployment, income, and resource availability.

Front 11

political–legal environment

Back 11

Component of the marketing environment consisting of laws and their interpretations that require firms to operate under competitive conditions and to protect consumer rights.

Front 12

social–cultural environment

Back 12

Component of the marketing environment consisting of the relationship between the marketer, society, and culture.

Front 13

technological environment

Back 13

Application to marketing of knowledge based on discoveries in science, inventions, and innovations.

Front 14

social responsibility

Back 14

Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective.

Front 15

marketing ethics

Back 15

Marketers’ standards of conduct and moral values.

Front 16

marketing mix

Back 16

Blending of the four strategy elements—product, distribution, promotion, and price—to fit the needs and preferences of a specific target market.

Front 17

SWOT analysis

Back 17

Review that helps planners compare internal organizational strengths and weaknesses with external opportunities and threats.

Front 18

first mover strategy

Back 18

Theory advocating that the company first to offer a product in a marketplace will be the long –term market winner.

Front 19

second mover strategy

Back 19

Theory that advocates observing closely the innovations of first movers and then improving on them to gain advantage in the marketplace.

Front 20

strategic planning

Back 20

Process of anticipating events and market conditions and deciding how a firm can best achieve its organizational objectives

Front 21

tactical planning

Back 21

tactical planning

Front 22

market share/market growth matrix

Back 22

Framework that places SBUs on a chart that plots market share against market growth potential.

Front 23

portfolio analysis

Back 23

Evaluation of a company’s products and divisions to determine the strongest and weakest.

Front 24

marketing strategy

Back 24

Overall, company–wide program for selecting a particular target market and then satisfying consumers in that market through the marketing mix.

Front 25

competitive environment

Back 25

Interactive process that occurs in the marketplace among marketers of directly competitive products, marketers of products that can be substituted for one another, and marketers competing for the consumer’s purchasing power.

Front 26

economic environment

Back 26

Factors that influence consumer buying power and marketing strategies, including stage of the business cycle, inflation and deflation, unemployment, income, and resource availability.

Front 27

political–legal environment

Back 27

Component of the marketing environment consisting of laws and their interpretations that require firms to operate under competitive conditions and to protect consumer rights.

Front 28

social–cultural environment

Back 28

Component of the marketing environment consisting of the relationship between the marketer, society, and culture.

Front 29

technological environment

Back 29

Application to marketing of knowledge based on discoveries in science, inventions, and innovations.

Front 30

social responsibility

Back 30

Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective.

Front 31

marketing ethics

Back 31

Marketers’ standards of conduct and moral values.

Front 32

consumer behavior

Back 32

Process through which buyers make purchase decisions.

Front 33

culture

Back 33

Values, beliefs, preferences, and tastes handed down from one generation to the next.

Front 34

offshoring

Back 34

Movement of high–wage jobs from one country to lower–cost overseas locations.

Front 35

outsourcing

Back 35

Using outside vendors to provide goods and services formerly produced in–house.

Front 36

decider

Back 36

Person who chooses a good or service, although another person may have the formal authority to complete the sale.

Front 37

modified rebuy

Back 37

Situation in which a purchaser is willing to reevaluate available options for repurchasing a good or service.

Front 38

straight rebuy

Back 38

Recurring purchase decision in which a customer repurchases a good or service that has performed satisfactorily in the past.

Front 39

new–task buying

Back 39

First–time or unique purchase situation that requires considerable effort by decision makers.

Front 40

reciprocity

Back 40

Buying from suppliers who are also customers

Front 41

buying center

Back 41

Participants in an organizational buying action

Front 42

countertrade

Back 42

Form of exporting whereby goods and services are bartered rather than sold for cash.

Front 43

European Union (EU)

Back 43

Customs union that is moving in the direction of an economic union by adopting a common currency, removing trade restrictions, and permitting free flow of goods and workers throughout the member nations.

Front 44

exchange rate

Back 44

Price of one nation’s currency in terms of another country’s currency.

Front 45

exporting

Back 45

Marketing domestically produced goods and services in foreign countries.

Front 46

foreign licensing

Back 46

Agreement that grants foreign marketers the right to distribute a firm’s merchandise or to use its trademark, patent, or process in a specified geographic area.

Front 47

franchise

Back 47

Contractual arrangement in which a wholesaler or retailer agrees to meet the operating requirements of a manufacturer or other franchiser.

Front 48

General Agreement on Tariffs and Trade (GATT)

Back 48

International trade accord that has helped reduce world tariffs.

Front 49

import quotas

Back 49

Trade restrictions limiting the number of units of certain goods that can enter a country for resale.

Front 50

importing

Back 50

Purchasing foreign goods and services.

Front 51

North American Free Trade Agreement (NAFTA)

Back 51

Accord removing trade barriers between Canada, Mexico, and the United States.

Front 52

tariff

Back 52

Tax levied against imported goods.

Front 53

World Trade Organization (WTO)

Back 53

Organization that replaces GATT, overseeing GATT agreements, making binding decisions in mediating disputes, and reducing trade barriers.

Front 54

Central American Free Trade Agreement–DR (CAFTA–DR)

Back 54

Trade agreement among the United States, Central American nations, and the Dominican Republic.

Front 55

common market

Back 55

Extension of a customs union by seeking to reconcile all government regulations affecting trade.

Front 56

customs union

Back 56

Establishment of a free–trade area plus a uniform tariff for trade with nonmember unions.

Front 57

dumping

Back 57

Controversial practice of selling a product in a foreign market at a price lower than what it receives in the producer’s domestic market.

Front 58

embargo

Back 58

Complete ban on the import of specified products.

Front 59

exchange control

Back 59

Method used to regulate the privilege of international trade among importing organizations by controlling access to foreign currencies.

Front 60

Free Trade Area of the Americas (FTAA)

Back 60

Proposed free–trade area stretching the length of the entire Western hemisphere and designed to extend free trade benefits to additional nations in North, Central, and South America.

Front 61

friendship, commerce, and navigation (FCN) treaties

Back 61

International agreements that deal with many aspects of commercial relations among nations.

Front 62

global marketing strategy

Back 62

Standardized marketing mix with minimal modifications that a firm uses in all of its domestic and foreign markets.

Front 63

infrastructure

Back 63

A nation’s basic system of transportation networks, communications systems, and energy facilities.

Front 64

ISO (International Organization for Standardization) certification

Back 64

Internationally recognized standards that ensure a company’s goods, services, and operations meet established quality levels and its operations minimize harm to the environment.