Marketing 345 Test 1- Chapters 1,2,4,5,8

Multinational Corporation

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

What does customer relationship management mean

A company wide business strategy designed to optimize probability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups.

Purchasing Power

A comparison of income versus the relative cost of a standard cost set of goods and services in different geographic areas.

Food and Drug Administration (FDA)

A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranding, or hazardous food and drug products.

Federal Trade Commission (FTC)

A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce.

Consumer Product Safety Commission (CPSC)

A federal agency established to protect the health and safety of consumers in and around their homes.

Countertrade

A form of trade in which all or part the payment for goods or services is in the form of goods or services

Group of twenty G-20

A forum for international economic development that promotes discussion between industrial and emerging market countries on key issues related to global economic stability.

European Union (EU)

A free trade zone between 28 European countries.

Target Market

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of the group, resulting in mutually satisfying exchanges.

Market Development

A marketing strategy that entails attracting new customers to existing products.

Product Development

A marketing strategy that entails the creation of new products for present markets.

Market Penetration

A marketing strategy that tries to increase market share among existing customers.

Inflation

A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.

Recession

A period of economic activity characterized by negative growth, which reduces demand for goods and services.

What does market orientation mean

A philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product; it is synonymous with the marketing concept.

What does production orientation mean

A philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the market place.

Blog

A publicity accessible web page that functions as an Interactive Journal where readers can post comments on the authors entries.

Family life cycle

A series of stages determined by a combination of age marital status and the presence or absence or children

Competitive Advantage

A set of unique features of a company and its products that are perceived by the target market as significant and superior to those of the competition.

Mission Statement

A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions.

Marketing Objective

A statement of what is to be accomplished through marketing activities.

Diversification

A strategy of increasing sales by introducing new products into new markets.

What does relationship marketing mean

A strategy that focuses on keeping and improving relationships with current customers.

Strategic business Unit

A subgroup of a single business or collection of related businesses within the larger organization.

Market segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Floating exchange rates

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

Marketing Audit

A thorough, systematic, periodic evaluation of the objectives , strategies, structure, and performance of the marketing organization.

Portfolio matrix

A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate.

Dominican Republic Central America Free Trade Agreement (CAFTA-DR)

A trade agreement instituted in 2005 that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the US.

General Agreement on Tariffs and Trade

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

Uruguay Round

A trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization.

World Trade Orginization

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

Marketing Mix (4 P's)

A unique blend of product,place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market.

Marketing plan

A written document that acts as a guidebook of marketing activities for the marketing manager.

Direct Foreign Investment

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

Sustainable Competitive Advantage

An advantage that cannot be copied by the competition.

North American Free Trade Agreements (NAFTA)

An agreement between Canada, US, and Mexico that created the worlds then largest free trade zone.

Buyer for export

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

Export Agent

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

Export Broker

An intermediate who plays the traditional brokers role by bringing buyer and seller together.

World Bank

An international bank that offers low interest loans, advice, and information to developing nations.

International Monetary Fund

An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation.

Cost Competitive Advantage

Being the low cost competitor in an industry while maintaining satisfactory profit margins.

Segmentation bases / variables

Characteristics of individuals groups or organizations

What does Teamwork mean

Collaborative efforts of people to accomplish common objectives.

Environmental Scanning

Collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan.

Experience Curves

Curves that show costs declining at a predictable rate as experience with a product increases.

What does customer satisfaction mean

Customers evaluation of a good or service in terms of whether it has met their needs and expectations.

Marketing myopia

Defining a business in terms of goods and services rather than in terms of the benefits customers seek.

What does empowerment mean

Delegation of authority to solve customers problems quickly, usually by the first person the customer notifies regarding a problem.

Marketing Planning

Designing activities relating to marketing objectives and the changing marketing environment.

Evaluation

Gauging the extent to which the marketing objectives have been achieved during the specified time period.

Cash cow

In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share.

Dog

In the portfolio matrix, a business unit that has low growth potential and a small market share.

Star

In the portfolio matrix, a business unit that is the fast growing market leader.n

Problem Child

In the portfolio matrix, a business unit that shows rapid growth but poor profit margins.

SWOT analysis

Internal Strengths, Weaknesses, external Opportunities and Threats.

Global Marketing

Marketing that targets markets throughout the world.

What does on demand marketing mean

On demand marketing delivers relevant experiences throughout the consumers decision and buying process that are integrated across both physical and virtual environments.

Baby Boomers

People born between 1946 and 1964.

Generation X

People born between 1965 and 1978.

Millennials/Generation Y

People born between 1979 and 1994.

What does exchange mean

People giving up something in order to receive something else they would rather have.

Market

People or organizations with needs or wants and the ability and willingness too buy.

Contract Manufacturing

Private label manufacturing by a foreign company.

Global Marketing Standardization

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

Control

Provides the mechanisms for evaluating marketing results in light of the plans objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines.

Basic Reseatrch

Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon.

Global Vision

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

Applied Research

Research that attempts to develop new or improved products.

Inshoring

Returning production jobs to the United States.

Demographic segmentation

Segmenting markets by age gender income ethnic background and family life cycle.

Geographic segmentation

Segmenting markets by region of a country or the world Market size Market density or climate

Exporting

Selling domestically produced products to buyers in other countries.

Outsourcing

Sending US jobs abroad.

Marketing Strategy

The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets.

What does marketing mean

The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Niche Competition Advantage

The advantage achieved when a firm seeks to target and effectively serve a small segment of the market.

What does sales orientation mean

The belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits.

Market Opportunity Analysis

The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments.

What does Societal marketing orientation mean

The idea that an organization exists not only to satisfy customer wants and needs and to meet organizational objectives but also to preserve or enhance individuals and society's long term best interest.

What does marketing concept mean

The idea that the social and economic justification for an organization's existence is the satisfaction of customer wants and needs while meeting organizational objectives.

Mercosur

The largest Latin American trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela.

Licensing

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

What does strategic planning mean

The managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities.

Component Lifestyles

The practice of choosing goods and services that meets ones diverse needs and interests rather than conforming to a single, traditional life style.

Exchange rate

The price of one country's currency in terms of another country's currency

Planning

The process of anticipating future events and determining strategies to achieve organizational objectives in the future.

Market segmentation

The process of dividing a market into meaningful relatively similar and identifiable segments or groups

Implementation

The process that turns a marketing plan into action assignment and ensures that these assignments are executed in a way that accomplishes the plan's objectives.

Product/service differentiation competitive advantage

The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition.

Dumping

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

Demography

The study of people's vital statistics, such as age, race, and ethnicity, and location.

Gross Domestic Product

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

Capital Intensive

Using more capital than labor in the production process.

Environmental Management

When a company implements strategies that attempt to shape the external environment within which it operates.

Joint Venture

When a domestic firm buys part of a foreign company or joins with a foreign company to create a new identity.

Multi management Strategy

When multinational firms enable individual subsidiaries to compete independently in domestic markets.

What does customer value mean

the relationship between benefits and the sacrifice necessary to obtain those benefits.