Marketing Terms For Chapter 3

Front 1

Social Profit

Back 1

The net benefit both the firm and society receive from a firm's ethical practices and socially responsible behavior.

Front 2

Business Ethics

Back 2

Rules of conduct for an organization.

Front 3

Codes of Ethics

Back 3

written standards of behavior to which everyone in an organization must subscribe.

Front 4

Consumerism

Back 4

A social movement that attempts to protect consumers from harmful business practices.

Front 5

Consumer Bill of Rights

Back 5

The rights of consumers to be protected by the federal government.

Front 6

Consumer Bill of Rights (4):

Back 6

-The right to be:
--safe
--informed
--heard
--the right to choose freely

Front 7

Corrective Advertising

Back 7

Advertising that clarifies or qualifies previous deceptive advertising claims.

Front 8

Puffery

Back 8

Claims made in advertising that cannot be proved true or untrue.

Front 9

Slotting Allowance

Back 9

A fee paid by a manufacturer to a retail store in exchange for agreeing to place products on the retailer's shelves.

Front 10

Social Responsibility

Back 10

A MGT practice philosophy in which organizations seek to engage in activities that have a positive effect on society and promote the public good.

Front 11

Environmental Stewardship

Back 11

A position taken by organizations to protect or enhance the natural environment as it conducts its business activities.

Front 12

Green Marketing

Back 12

A MKT strategy that supports environmental stewardship by creating an environmentally founded differential benefit in the minds of consumers.

Front 13

Cause Marketing

Back 13

A strategy of joining forces with a not-for-profit organization to tackle a social problem.

Front 14

Cultural Diversity

Back 14

A MGT practice that actively seeks to include people of different races, ethnicities, religions, and sexes in its employees, customers, suppliers, and distribution channel partners.

Front 15

World Trade

Back 15

The flow of goods and services among different countries.

Front 16

Countertrade

Back 16

A type of trade in which goods are paid for with other goods instead of cash.

Front 17

Born-Global Firms

Back 17

Companies that try to sell their products in multiple countries from the moment they are created.

Front 18

Protectionism

Back 18

A policy adopted by a government to give domestic companies an advantage.

Front 19

Import Quotas

Back 19

Limitations set by a government on the amount of a product allowed to enter or leave a country.

Front 20

Embargo

Back 20

An extreme quota that completely prohibits the import or export of certain goods.

Front 21

Tariffs

Back 21

Taxes on imported goods.

Front 22

General Agreements on Tariffs and Trade (GATT)

Back 22

International treaty to reduce import tax levels and trade restrictions.

Front 23

World Trade Organization (WTO)

Back 23

Sets trade rules for its member nations and mediates between disputes between nations. Replaced GATT.

Front 24

Economic Communities

Back 24

Groups of countries that band together for the promotion of trade and to make it easier for member countries to compete elsewhere. EU

Front 25

European Union (EU)

Back 25

An economic community that includes most of Europe.

Front 26

North American Free Trade Agreement (NAFTA)

Back 26

The world's largest economic community composed of the United States, Mexico, and and Canada.

Front 27

Gross Domestic Product (GDP)

Back 27

The total dollar amount of goods and services produced by a nation within its borders in a year.

Front 28

Gross National Product (GNP)

Back 28

The value of all goods and services produced by a country's citizens or organizations, whether located in the country's borders or not.

Front 29

Economic Infrastructure

Back 29

The quality of a country's distribution, financial, and communication systems.

Front 30

Less Developed Country (LDC)

Back 30

A country at the lowest stage of economic development.

Front 31

Standard of Living

Back 31

An indicator of the average quality and quantity of goods and services consumed in a country.

Front 32

Developing Countries

Back 32

Countries in which the economy is shifting its emphasis from agriculture to industry.

Front 33

Developed Country

Back 33

A country that boasts sophisticated MKT systems, strong private enterprise, and bountiful market potential for many goods and services.

Front 34

Economic Sanctions

Back 34

Trade prohibitions imposed by one country against another.

Front 35

Nationalization

Back 35

A domestic government's takeover of a foreign company for its assets with some reimbursement, though often not for the full value.

Front 36

Expropriation

Back 36

A domestic government's seizure of a foreign company's assets without any compensation.

Front 37

Local Content Rules

Back 37

A form of protectionism stipulating that a certain proportion of a product must consist of components supplied by industries in the host country.

Front 38

Cultural values

Back 38

Deeply held beliefs about right and wrong ways to live.

Front 39

Collectivist Cultures

Back 39

Cultures in which people subordinate their personal goals to those of a stable community.

Front 40

Individualistic Cultures

Back 40

Cultures in which people tend to attach more importance to personal goals than to those of the larger community.

Front 41

Norms

Back 41

Specific rules dictating what is right and wrong, acceptable or unacceptable.

Front 42

Custom

Back 42

A norm handed down from the past that controls basic behaviors.

Front 43

Mores

Back 43

Customs with a strong moral overtone.

Front 44

Conventions

Back 44

Norms regarding the conduct of everyday life.

Front 45

Ethnocentrism

Back 45

The tendency to prefer products or people of one's own culture.

Front 46

Export Merchants

Back 46

Intermediaries used by a firm to represent them in other countries.

Front 47

Licensing (In foreign markets)

Back 47

An agreement in which one firm gives another firm the right to produce and market its product in a specific country or region in return for royalties.

Front 48

Franchising

Back 48

A from of licensing involving the right to adapt an entire system of doing business.

Front 49

Strategic Alliance

Back 49

Relationship developed between a firm seeking a deeper commitment to a foreign market and a domestic firm in a target country.

Front 50

Joint Venture

Back 50

A strategic alliance in which a new entity owned by two or more firms is created to allow the partners to pool their resources for common goals.

Front 51

Gray market goods

Back 51

Items manufactured outside a country and then imported without the consent of the trademark holder.

Front 52

Dumping

Back 52

A company tries to get a toehold in a foreign market by pricing its products lower than they are offered at home.