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80 Cards in this Set
- Front
- Back
Marketing
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the process of creating, distributing, promoting & pricing goods, service & ideas to facilitate satisfying exchange relationships with customers & develop & maintain favorable relationships wih stakeholders in a dynamic environment
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Marketing Mix
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product, distribution, promotion & pricing; they decide what type of each variable to use & in what amounts, a primary goal of marketing manager is to maintain the right mix of these elements to satisfy customer needs for a general product type
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Marketing Strategy
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the variable that a company chooses to market its product with
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The product variable
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deals with researching customers' needs & wants &
designing a product (good, service, or idea) that satisfies them; involves creating or modifying brand names & packaging & it may also include decisions regarding warranty & repair services |
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The distribution variable
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products must be available at the right time and
through convenient distribution methods |
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The promotion variable
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refers to activities used to inform individuals or
groups about the organization & its existing products: promotional activities can also educate customers about product features or urge people to take a particular stance on a political or social issue |
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The price variable
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relates to decisions & actions associated with
establishing pricing objectives & policies & determing product prices; this is a critical component & also the easiest variable to manipulate |
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Concept of exchange
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the provision or transfer of goods, services, or ideas in return
for something of value. Any product (good, service, or idea) may be involved in a marketing exchange |
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Conditions for exchange
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2+ individuals, groups, or organizations must participate, and each must
possess something of value that the other party desires; The exchange should provide a benefit or satisfaction to both parties; Each party must have the confidence in the promise of 'something of value' held by the one; To build trust, the parties to exchange must meet expectations |
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Target Market
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specific group of customers that may be a vast number of people or
a relatively small group that organizations focus their marketing efforts on |
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Marketing Concept
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a philosophy that an organization should try to provide
products that satisfy customers needs through a coordinated set of activities that also allows the organizaion to achieve its goals; customer satisfaction is the major focus |
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Evolution of marketing concept (production)
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1850-1920 the industrial revolution
made it possible to produce goods more efficiently thanks to the discoveries of electricity, rail transportation, division of labor, assembly lines & mass production. Products poured into the marketplace |
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Evolution of marketing concept (sales)
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1920-1950; strong demand for products
subsided and businesses realized they would have to "sell" products to buyers; businesses viewed sales as the major means of increasing profits & came to adopt a sales orientation, they believed personal selling, advertising, & distribution were the most important marketing activities |
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Evolution of marketing concept (marketing orientation)
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1950s- present day
businesses began to realize that they must first determine what customers want & then produce these products rather than making the products first & then convincing people that they needed to buy them. A market orientation requires an organization- wide commitment to researching & responding to customer needs |
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Relationship marketing
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establishing long-term, mutually beneficial buyer-seller
relationships through the creation of more satisfying exchanges by focusing on value |
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Customer relationship management (CRM)
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focuses on using information about
customers to create marketing strategies that develop & sustain desirable customer relationships; organizations attempt to increase long-term profitability by building customer loyalty, which results from increasing customer value |
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Concept of Value
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a customer's subjective assessment of benefits relative to cost in
determining the worth of a product; it is important in long-term customer relationships |
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Environmental scanning
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the process of collecting information about forces in the
marketing environment; it involves observation, secondary sources (business, trade, government, & general-interest publications) & marketing research; it gives companies an edge over competitors by allowing them to take advantage of current trends, however companies must know how to use this information in the strategic planning process. The internet is a common tool for environmental scanning |
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Environmental analysis
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the process of assessing and interpreting the information
gathered through environmental scanning; a manager evaluates the information for accuracy, tries to resolve inconsistencies & can assign significance to the findings, this allows the manger to identify potential threats & opportunities linked to environmental changes. |
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brand competitors
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firms that market products with similar features &
benefits to the same customers at similar prices |
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product competitors
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firms that compete in the same product class but
market products with different features, benefits, & prices |
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generic competitors
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firms that provide very different products that solve
the same problem or satisfy the same basic customer need |
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total budget competitors
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firms that compete for the limited financial
resources of the same customers |
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Monopoly
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a competive structure in which an organization offers a product
that has no close substitutes, making that organizaion the sole source of supply |
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Oligopoly
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a competitive structure in which a few sellers control the supply
of large proportion of a product |
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Monopolistic Competition
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a competitive structure in which a firm has
many potential competitors & tries to develop a marketing strategy to differentiate its product |
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Pure competition
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a market structure characterized by an extremely large
number of sellers, not strong enough to significantly influence price or supply |
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Buying power
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resources (money, goods, services) that can be traded in an exchange
& enable the individual to make purchases |
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Components of buying power
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the major financial sources of buying power are
income, credit, & wealth |
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Income
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amount of money received through wages, rents, investments,
pensions, & subsidy payments for a given period |
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Disposable income
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money left over after tax payments, that
is used for spending or saving; this is what marketers are most interested in |
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Discretionary income
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disposable income left over after an
individual has bought the basic necessities of food, clothing & shelter; people use this to purchase entertainment, vacations, automobiles, education, pets, furniture, & pets |
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Credit
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enables people to spend future income now or in the near future
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Wealth
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the accumulation of past income, natural resources, & financial
resources |
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Regulatory agencies and marketing activities
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Regulatory agencies influence
product development, pricing, packaging, advertising, personal selling, & distribution. Of all the federal regulatory agencies, the federal trade commission (FTC) most heavily influences marketing activities; it allocates a large portion of resources to curbing false advertising, misleading pricing, & deceptive packaging, & labeling |
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Procompetitive legislation
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laws designed to preserve competition, most were
enacted to end various antitade practices |
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Sherman Antitrust Act
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was passed in 1890 to prevent businesses from
restraining trade & monopolizing markets |
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Examples of illegal anti-competitive practices
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stealing trade
secrets or obtaining other confidential information from a competitor's employees, trademark & copyright infringement, price fixing, false advertising, deceptive selling methods ( bait & switch) and false representation of products |
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Consumer protection legislation
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since the mid-1800s lawmakers have passed
laws to prohibit adulteration of food & drugs, these types of laws became popular at the federal level in the mid 60s & early 1970s; most deal with customer safety (food & drug acts) & prohibit the sale of various hazardous products, some require that information about specific products be put on its labels |
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Self-regulation
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in an attempt to be good corporate citizens & prevent government
invtervention, some businesses try to regulate themselves; many were established to stop or stall the development of laws & governmental regulatory groups that would regulate the association's marketing practices; the best-known self regulatory agency is the Better Business Bureau (BBB) |
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Technology assessment
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a procedure where managers try to forsee the effects of
new products & processes on their firm's operations, on other business organizations, & on society in general; with information obtained through a technology assessment, management tries to estimate whether benefits of adopting a specific technology outweigh costs to the firm & society at large |
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Socioeconomic changes
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our population is getting older so businesses are taking a
proactive response to that; the U.S population aging is detrimental to certain entertainment industries; phamaceutical companies however, are benefitting from this. Bryan/College station is dominted by a youthful market because of the large number of students. With a 40% divorce rate in the U.S right now cultural "family" values are changing |
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Marketing citizenship
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the adoption of a strategic focus for fulfilling the economic,
legal, ethical, & philanthropic social responsibilities expected by stakeholders |
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Stakeholder Orientation
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when companies consider the diverse perspectives of
stakeholders in their daily operations & strategic planning; this is an important element of social responsibly |
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Marketing Ethics
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principles & standards that define acceptable marketing
conduct as determined by various stakeholders (including the public, government regulators, private-interest groups, consumers, industry, & the organization itself) |
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Cause-Related Marketing
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the practice of linking products to a particular social
cause on an ongoing or short-term basis |
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Strategic Philanthropy
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the synergistic use of oganizational core competencies &
social benefits; it involves both financial & non-financial contributions to stakeholders but also benefits the company |
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Green marketing
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a strategic process involving stakeholder assessment to
create meaningful long-term relationships with customers while maintaining, supporting, & enhancing the natural environment |
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Consumerism
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the effects of independent individuals, groups, &
organizations to protect the rights of consumers, now it is easier than ever before for customers to share their opinions thanks to the internet. Four basic consumer rights were drafted by president JFK, they were: right to safety, the right to be informed, the right to choose, & the right to be heard |
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Community Relations
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individual communities expect marketers to
make philanthropic contributions to civic projects & institutions & to be "good corporate citizens", corporate philanthropy is on the rise, companies can impove their community's quality of life through employment opportunities, economic development, & financial contributions to educational, healthy, cultural & recreational causes |
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Individual factors
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people's won values & principles of right or wrong
which they learn through socialization by family members, social groups, religion, & formal education |
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Opportunity
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conditions that limit barriers or provide rewards to those
who act unethically |
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Organizational relationships
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ethical choices in marketing are often made
jointly and are based on what is learnt from others in the organization, this is highly influenced by organizational culture & structure. The chief executive or vice president sets the ethical tone for the entire marketing organization. Coworkers' influnce on an individual's ethical choices depends on the person's exposure to unethical behavior, the more a person is exposed to unethical behavior, the more likely they are to engage in unethical behavior. Organizational relationships are the most influential factor in whether a person will act unethically or not |
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Improving ethical conduct
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it is possible to improve ethical conduct in an organization
by hiring ethical employees & eliminating unethical ones, & by improving the organization's ethical standards; if top management develops & enforces ethical & legal compliance programs to encourage ethical decision making, it helps individuals make better decisions |
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Cultural, social, ethical forces
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marketing activities are influenced by beliefs &
values regarding family, religion, education, health, & recreation. Local preferences, tastes & idioms can all prove complicated for international marketers. Sometimes marketing is mistranslated & it can be difficult to transfer marketing symbols, trademarks, & logos. Cultural differences affect marketing negotiations between international companies. Consumer preferences from products; therefore when products are introduced from one nation into another, acceptance is far more likely if similarities exist between the 2 cultures. The use of payoffs & bribes is common in many other countries, because U.S trade & corporate policy (& U.S law) prohibits direct involvement in payoffs & bribes, U.S firms may have a hard time competing with foreign firms. |
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import tariff
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a duty levied by a nation on goods bought outside its borders
& brought into the country |
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quota
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a limit on the amount of goods an importing country will accept for
certain product categories in a specific period of time |
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embargo
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a government's suspension of trade in a particular product or
with a given country, usually for political, health, or religious reasons |
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exchange controls
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government restrictions on the amount of a particular
currency that can be bought or sold, these can limit international trade |
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Balance of Trade
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the difference in value between a nation's exports and is imports;
countries may limit imports to maintain a favorable balance of trade |
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GDP (Gross Domestic Product)
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the market value of a nations total output of goods &
services for a given period; an overall measure of economic standing, the U.S. has the largest GDP of all the world |
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Political & Legal forces
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a country's legal & regulatory infrastructure is a direct
reflection of the political climate in the country; the political climate, political officials & trade agreements directly affect legislation & regulation; a nation's political system, laws, regulatory bodies, special-interest groups, and courts all have an impact on international marketing |
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Intellectual property rights
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the copyrighted or trademarked ideas & creative
materials developed to solve problems, carry out applications, educate, & entertain others; the internet has created many issues with this. In many Asian countries, piracy laws are not truly enforced like in the U.S; counterfeit software, books, music, & designer products can be found almost anywhere |
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value equation
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Customer benefits minus customer cost
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True customers
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Customers who are glad they have done business with you after they have done business with you
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Business cycle
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Prosperity, recession, depression, and recovery
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Willingness to spend
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An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces
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Social responsibility
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an organization’s obligation to maximize its positive impact and minimize its negative impact on society
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Pyramid of social responsibility
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Philanthropic, ethical, legal, & economic
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natural environment
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consumers insisting not only on a good quality of life but on a healthful environment so they can maintain a high standard of living during their lifetimes
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Social Responsibly Issues
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Natural environment, Consumerism, & Community Relations
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Sociocultural Forces
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The influences in a society and its culture(s) that change people’s attitudes, beliefs, norms, customs, and lifestyles
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Ethical Issue
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An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical.
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Nature of marketing ethics (Factors in ethical decision-making)
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individual factors, organizational relationships, & opportunity
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Organizational Culture
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A set of values, beliefs, goals, norms, and rituals that members of an organization share
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Codes of Conduct
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Formalized rules and standards that describe what the company expects of its employees
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International Marketing
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Developing and performing marketing activities across national boundaries
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Trading Company
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A company that links buyers and sellers in different countries
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Licensing
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An alternative to direct investment that requires a licensee to pay commission or royalties on sales or supplies used in manufacturing
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Franchising
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A form of licensing in which a franchiser, in exchange for a financial commitment, grants and franchisee the right to market its product in accordance with the franchiser’s standards.
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