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207 Cards in this Set
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Marketing
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the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large
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What does marketing seek to serve both buyers and sellers?
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to discover the needs and wants of prospective customers
to satisfy them |
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Exchange
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the trade of things of value between buyer and seller so that each is better off after the trade
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Factors required for marketing to occur
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two or more parties(individuals or organizations) with unsatisfied needs
a desire and ability on their part to be satisfied a way for the parties to communicate something to exchange |
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Market
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people with both the desire and the ability to buy a specific offering
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Target Market
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one or more specific groups of potential consumers toward which an organization directs its marketing program
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Marketing Mix
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the marketing manager's controllable factors that can be used to solve a marketing problem
Product Price Promotion Place |
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Environmental Forces
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forces beyond marketers' control
social economic technological competitive regulatory forces |
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Customer Value
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the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price
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Relationship Marketing
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linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefits
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Marketing Program
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a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
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Marketing Concept
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the idea that an organization should (1) strive to satisfy the needs of consumers (2) while also trying to achieve the organization's goals
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Four stages in lives of manufacturing firms
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Production era
Sales era Marketing concept era Customer relationship era |
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Market Orientation
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focuses efforts on (1) continuously collecting information about customers' needs, (2) sharing this information across departments, and (3) using it to create customer value
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Customer Relationship Management (CRM)
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the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace
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Customer Experience
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the internal response that customers have to all aspects of an organization and its offering
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Societal Marketing Concept
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the view that organizations should satisfy the needs of consumers in a way that provides for society's well-being
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Macromarketing
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the study of the aggregate flow of a nation's goods and services to benefit society
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Micromarketing
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how an individual organization directs its marketing activities and allocates its resources to benefit its customers
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Who Markets?
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Every organization markets.
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What is Marketed?
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Goods, services, and ideas
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Who Buys and Uses What Is Marketed?
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both individuals and organizations buy and use goods and services that are marketed
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Ultimate consumers
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the people who use the goods and services purchased for a household
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Organizational Buyers
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those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale
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Who Benefits?
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consumers who buy, organizations that sell, and society as a whole
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utility
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the benefits or customer value received by users of the product
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Form utility
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the production of the good or service
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Place utility
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having the offering available where consumers need it
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Time utility
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having it available when needed
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Possession utility
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the value of making an item easy to purchase through the provision of credit cards or financial arrangements
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Organization
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a legal entity of people who share a common mission
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Business Firm
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a privately owned organization that serves its customers to earn a profit so that it can survive
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Profit
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the money left after a business firm's total expenses are subtracted from its total revenues and it the reward for the risk it undertakes in marketing its offerings
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Nonprofit Organization
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a nongovernmental organization that serves its customers but does not have profit as an organizational goal
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Industry
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organizations that develop similar offerings
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Strategy
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an organization's long-term course of action designed to deliver a unique customer experience while achieving its goals
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Corporate Level
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where top management directs overall strategy for the entire organization
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Strategic Business Unit (SBU)
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a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers
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Functional Level
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where groups of specialists actually create value for the organization
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Cross-functional Teams
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consist of small number of people from different departments who are mutually accountable to accomplish a task or a common set of performance goals
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Core Values
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the fundamental, passionate, and enduring principles that guide its conduct over time
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Mission
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a statement of the organization's function in society, often identifying its customers, markets, products, and technologies
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Mission Statement (Vision)
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should be clear, concise, meaningful, inspirational, and long-term
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Organizational Culture
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the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization
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Business
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describes the clear, broad, underlying industry or market sector of an organization's offering
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Goals or Objectives
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statements of an accomplishment of a task to be achieved, often by a specific time
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Market Share
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the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
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Types of Business Goals
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profit
sales market share quality customer satisfaction employee welfare social responsibility |
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Marketing Dashboard
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the visual computer display of the essential information related to achieving a marketing objective
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Marketing Metric
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a measure of the quantitative value or trend of a marketing activity or result
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Marketing Plan
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a road map for the marketing activities of an organization for a specified future time period
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Core competencies
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its special capabilities-the skills, technologies, and resources-that distinguish it from other organizations and provide customer value
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Competitive Advantage
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a unique strength relative to competitors that provides superior returns, often based on quality, time, cost, or innovation
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Business Portfolio Analysis
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purpose is to determine the appeal of each SBU or offering and then determine the amount of cash, if any, each should receive
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BCG's names for four quadrants in growth-share matrix
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cash cows
stars question marks dogs |
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Diversification Analysis
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tool that helps a firm search for growth opportunities from among current and new markets as well as current and new products
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4 market-product strategies
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market penetration
market development product development diversification |
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Strategic marketing Process
steps? |
an organization allocates its marketing mix resources to reach its target markets
Planning, implementation, evaluation |
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3 steps in planning phase
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situation (SWOT) analysis
market-product focus and goal setting the marketing program |
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Situation (SWOT) Analysis
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taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization's marketing plans and the external forces and trends affecting it
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Marketing Segmentation
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involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action
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Medtronic's Five-year Plan
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set marketing and product goals
select target markets find points of difference position the product |
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Points of difference
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characteristics of a product that make it superior to competitive substitutes
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Implementation Phase
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obtaining resources
designing the marketing organization developing planning schedules actually executing the marketing program designed in the planning phase |
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Marketing strategy
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the means by which a marketing goal is to be achieved, usually characterized by a specified target market and a marketing program to reach it
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Marketing Tactics
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detailed day-to-day operational decisions essential to the overall success of marketing strategies
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Evaluation Phase
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compare the results of the marketing program with the goals in the written plans to identify deviations
act on these deviations-correcting negative deviations and exploiting positive ones |
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Environmental Scanning
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the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
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Social Forces
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include the demographic characteristics of the population and its values
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Demographics
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describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
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Baby Boomers
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the generation of children born between 1946 and 1964
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Generation X
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includes the 15 percent of population born between 1965 and 1976
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Generation Y
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includes the 72 million Americans born between 1977 and 1994
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Blended Family
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one formed by merging two previously separated units into a single household
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Multicultural Marketing
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combination of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races
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Culture
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the set of values, ideas, and attitudes that are learned and shared among the members of a group
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Value Consciousness
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the concern for obtaining the best quality, features, and performance of a product or service for a given price
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Economy
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the income, expenditures, and resources that affect the cost of running a business and household
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Gross Income
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the total amount of money made in one year by a person, household, or family unit
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Disposable Income
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the money a consumer has left after paying taxes to use for necessities
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Discretionary Income
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the money that remains after paying for taxes and necessities
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Technology
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inventions or innovations from applied science or engineering research
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Marketspace
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an information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings
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Electronic Commerce
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any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services
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Intranet
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an Internet-based network used within the boundaries of an organization
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Extranet
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permit communication between a company and its supplier, distributors, and other partners; uses Internet-based technologies
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Competition
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the alternative firms that could provide a product to satisfy a specific market's needs
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Four Forms of Competition
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pure competition
monopolistic competition oligopoly pure monopoly |
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Barriers to Entry
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business practices or conditions that make it difficult for new firms to enter the market
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Components of Competition
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Entry
Power of Buyers and Suppliers Existing Competitors and Substitutes |
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Regulation
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consists of restrictions state and federal laws place on business with regard to the conduct of its activities
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Sherman Antitrust Act (1890)
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forbids (1) contracts, combinations, or conspiracies in restraint of trade and (2) actual monopolies or attempts to monopolize any part of trade or commerce
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Clayton Act (1914)
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forbids certain actions that are likely to lessen competition, although no actual harm has yet occurred
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Consumer Behavior
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the actions a person takes in purchasing and using products and services, including the mental and social processes that come before and after these actions
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Purchase Decision Process
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problem recognition
information search alternative evaluation purchase decision postpurchase behavior |
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Problem Recognition
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perceiving a difference between a person's ideal and actual situations big enough to trigger a decision
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Internal Search
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scanning memory for previous experiences with products or brands
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Primary sources of external information
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personal sources: relatives and friends
public sources: product-rating organizations, government agencies, and TV consumer programs marketer-dominated sources: advertising, company Web sites, salespeople, and point-of-purchase displays in stores |
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How does information search stage clarify the problem for the consumer?
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suggesting criteria to use for the purchase
yielding brand names that might meet the criteria developing consumer value perceptions |
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Evaluative Criteria
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represents both the objective attributes of a brand (such as display) and the subjective ones (such as prestige) you use to compare different products and brands
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Consideration Set
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the group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware in the product class
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Cognitive Dissonance
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feeling of postpurchase psychological tension or anxiety
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Involvement
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the personal, social, and economic significance of the purchase to the consumer
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Situational Influences
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the purchase task
social surroundings physical surroundings temporal effects antecedent states |
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Motivation
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the energizing force that stimulates behavior to satisfy a need
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Hierarchy of Needs
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physiological needs
safety needs social needs personal needs self-actualization needs |
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Personality
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person's consistent behaviors or responses to recurring situations
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Key Traits
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enduring characteristics within a person or in his or her relationship with others
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Self-concept
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the way people see themselves and the way they believe others see them
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Perception
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the process by which an individual selects, organizes, and interprets information to create a meaningful picture of the world
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Selective Perception
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a filtering of exposure, comprehension, and retention
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Selective Exposure
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occurs when people pay attention to messages that are consistent with their attitudes and beliefs and ignore messages that are inconsistent
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Selective Comprehension
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involves interpreting information so that it is consistent with your attitudes and beliefs
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Selective retention
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consumers do not remember all the information they see, read, or hear, even minutes after exposure to it
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Subliminal perception
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you see or hear messages without being aware of them
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Perceived risk
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the anxiety felt because the consumer cannot anticipate the outcomes of a purchase but believes there may be negative consequences
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Learning
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refers to those behaviors that result from repeated experience and reasoning
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Behavioral Learning
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process of developing automatic responses to a situation built up through repeated exposure to it
drive, cue, response, reinforcement |
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Drive
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a need that moves an individual to action
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Cue
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stimulus or symbol perceived by consumers
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Response
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action taken by a consumer to satisfy the drive
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Reinforcement
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reward
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Stimulus Generalization
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occurs when a response elicited by one stimulus (cue) is generalized to another stimulus
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Stimulus Discrimination
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a person's ability to perceive differences in stimuli
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Cognitive Learning
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making connections between two or more ideas or simply observing the outcomes of others' behaviors and adjusting your own accordingly
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Brand Loyalty
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a favorable attitude toward and consistent purchase of a single brand over time
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Attitude
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learned predisposition to respond to an object or class of objects in a consistently favorable or unfavorable way; shaped by learned values and beliefs
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Beliefs
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consumer's subjective perception of how a product or brand performs on different attributes
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Lifestyle
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mode of living that is identified by how people spend their time and resources, what they consider important in their environment, and what they think of themselves and the world around them
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Ideals-motivated Groups
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Thinkers: mature reflective, and well educated people who value order, knowledge, and responsibility
Believers: conservative, conventional people with concrete beliefs base don traditional, established codes: family, religion, community, and the nation |
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Achievement-motivated Groups
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Achievers: have a busy, goal-directed lifestyle and a deep commitment to career and family
Strivers: trendy, fun-loving, and less self-confident than Achievers |
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Self-expression-motivated Groups
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Experiencers: young, enthusiastic, and impulsive consumers who become excited about new possibilities but are equally quick to cool
Makers: express themselves and experience the world by working on it-raising children or fixing a car |
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High- and low-resource groups
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Innovators: successful, sophisticated, take-charge people with high self-esteem and abundant resources of all kinds
Survivors: focus on meeting basic needs rather than fulfilling desires |
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Opinion Leaders
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individuals who exert direct or indirect social influence over others
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Word of Mouth
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influencing of people during conversations
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Reference groups
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people to whom an individual looks as a basis for self-appraisal or as a source of personal standards
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Membership group
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one to which a person actually belongs
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Aspiration group
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one that a person wishes to be a member of or wishes to be identified with
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Dissociative group
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one that a person wishes to maintain a distance from because of differences in values or behaviors
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Consumer Socialization
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the process by which people acquire the skills, knowledge, and attitudes necessary to function as consumers
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Family Life Cycle
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describes the distinct phases that a family progresses through from formation to retirement, each phase bringing with it identifiable purchasing behaviors
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Roles of Family Members in Purchase Process
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information gatherer
influencer decision maker purchaser user |
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Social Class
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the relatively permanent, homogeneous divisions in a society into which people sharing similar values, interests, and behavior can be grouped
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Subcultures
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subgroups within the larger, or national, culture with unique vales, ideas, and attitudes
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Business Marketing
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the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others
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Organizational Buyers
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manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale
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Industrial Firms
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reprocess a product or service they buy before selling it again to the next buyer
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Resellers
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wholesalers and retailers that buy physical products and resell them again without any reprocessing
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Government units
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federal, state, and local agencies that buy goods and services for the constituents they serve
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North American Industry Classification System (NAICS)
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provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of NAFTA
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Derived Demand
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the demand for industrial products and services is driven by, or derived from, demand for consumer products and services
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Organizational Buying Criteria
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the objective attributes of the supplier's products and services and the capabilities of the supplier itself
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ISO 9000 Standards
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standards for registration and certification of a manufacturer's quality management and assurance system based on an on-site audit of practices and procedure
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Supplier Development
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the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers
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Reciprocity
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industrial buying practice in which two organizations agree to purchase each other's products and services
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Supply Partnership
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exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer
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Buying Center
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several people in the organization participate in the buying process
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Roles in the Buying Center
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users
influencers buyers deciders gatekeepers |
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Buy Classes
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new buy
straight rebuy modified rebuy |
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Organizational Buying Behavior
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the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers
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Make-Buy Decision
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an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself
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Value Analysis
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a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs
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Bidder's List
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a list of firms believed to be qualified to supply a given item
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Fours lessons when selling to organizational businesses
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understand the organization's needs
get on the right bidder's list find the right people int he buying center provide value to organizational buyers |
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e-marketplaces
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online trading communities that bring together buyers and supplier organizations
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Features of E-marketplaces
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thousands of geographically dispersed buyers and sellers
volatile prices caused by demand and supply fluctuations time sensitivity due to perishable offerings and changing technologies easily comparable offerings between a variety of sellers |
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Countertrade
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the practice of using barter rather than money for making global sales
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Gross Domestic Product
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the monetary value of all goods and services produced in a country during one year
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Balance of Trade
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the difference between the monetary value of a nation's exports and imports
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Porter's Diamond of National Competitive Advantage
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Factor conditions
demand conditions related and supporting industries company strategy, structure, and rivalry |
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Economic Espionage Act (1996)
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makes the theft of trade secrets by foreign entities a federal crime in US
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Four Global Trends
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gradual decline of economic protectionism by individual countries
formal economic integration and free trade among nations global competition among global companies for global customers emergence of a networked global marketspace |
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Protectionism
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the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas
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Tariffs
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government tax on goods or services entering a country, primarily serve to raise prices on imports
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Quota
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restriction placed on the amount of a product allowed to enter or leave a country
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General Agreement on Tariffs and Trade (GATT)
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limits trade barriers and promotes world trade through the reduction of tariffs
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World Trade Organization (WTO)
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addresses array of world trade issues 1995
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Transnational Trade Groups
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European Union
North American Free Trade Agreement Asian Free Trade Agreements |
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Global competition
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exists when firms originate, produce, and market their products and services worldwide
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Strategic Alliances
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agreements among two or more independent firms to cooperate for the purpose of achieving common goals
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International Firm
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engages in trade and marketing in different countries as an extension of the marketing strategy in its home country
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Multinational firm
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views the world as consisting of unique parts and markets to each part differently; uses multidomestic marketing strategy
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Transnational firm
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views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences; uses global marketing strategy
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Global Brand
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a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
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Global consumers
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consist of consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services
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Cross-Cultural Analysis
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the study of similarities and differences among consumers in two or more nations or societies
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Values
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represent personally or socially preferable modes of conduct or states of existence that tend to persist over time
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Customs
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what is considered normal and expected about the way people do things in a specific country
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Foreign Corrupt Practices Act (1977)
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make it a crime for US corporations to bribe an official of a foreign government or political part to obtain or retain business in a foreign country
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Cultural Symbols
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things that represent ideas and concepts
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Semiotics
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examines the correspondence between symbols and their role in the assignment of meaning for people
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Back Translation
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where a translated word or phrase is retranslated into the original language by a different interpreter to catch errors
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Consumer Ethnocentrism
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tendency to believe that it is inappropriate, indeed immoral, to purchase foreign-made products
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Scan of Global Marketplace should include
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comparative analysis of the economic development in different countries
an assessment of the economic infrastructure in these countries measurement of consumer income in different countries recognition of a country's currency exchange rates |
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Subgroups of Developing Countries
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those that have already made the move to industrial economy
those that remain locked in a preindustrial economy |
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Bottom of the pyramid
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the largest, but poorest socioeconomic group of people in the world
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Economic Infrastructure
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country's communications, transportation, financial, and distribution systems
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Microfinance
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the practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities
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Currency exchange rate
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the price of one country's currency expressed in terms of another country's currency
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Means of Market Entry
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exporting
licensing joint venture direct investment |
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Exporting
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producing goods in one country and selling them in another country
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Variations of Licensing
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Contract Manufacturing: US company may contract with a foreign firm to manufacture products according to stated specifications
Contract Assembly: US company may contract with a foreign firm to assemble (not manufacture) parts and components that have been shipped to that country |
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Joint Venture
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when a foreign company and a local firm invest together to create a local business
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Direct Investment
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a domestic firm actually investing in and owning a foreign subsidiary or division
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Ways product may be sold globally
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product extension
product adaptation product invention |
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Dumping
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when a firm sells a product in a foreign country below its domestic price or below its actual cost
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Gray Market (parallel importing)
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a situation where products are sold through unauthorized channels of distribution
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