Marketing Chapters 5-9

Family Life Cycle

A family's progression from formation to retirement, each phase bringing with it distinct purchasing behaviors

Tariff

A government tax on goods or services entering a country, primarily serving to raise prices on imports

Foreign Corrupt Practices Act (1977)

A law that makes it a crime for U.S. corporations to bribe an official of foreign government or political party to obtain or retain business

Personality

A person's consistent behaviors or responses to recurring situations

Quota

A restriction placed on the amount of a product allowed to enter or leave a country

Learning

Behaviors that result from repeated experience or reasoning

measures of success

Criteria or standards used in evaluating proposed solutions o a problem

Global Competition

Exists when firms originate, produce, and market their products and services world wide.

questionnaire data

Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors

Opinion Leaders

Individuals who have social influence over others

World Trade Organization

Institution that sets rules governing trade between its members through a panel of trade experts

Organizational buyers

Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale

customs

Norms and expectations about the way people do things in a specific country

Traditional auction

Occurs when a seller puts an item up for sale and would-be buyers bid in competition with each other

Reference Groups

People to whom an individual looks as a basis for self-appraisal or as a source of personal standards

North American Industry Classification System (NAICS)

Provides common industry definitions for Canada, Mexico, and the United States

Constraints

Restrictions placed on potential solutions to a problem

Back translation

Retranslating a word or phrase back into the original language using a different interpreter to catch errors

Consumer behavior

The actions a person takes in purchasing and using products and services

Perceived risk

The anxiety felt when a consumer cannot anticipate possible negative outcomes of a purchase

Derived Demand

The demand for industrial products and services is driven by demand for consumer products and services

Motivation

The energizing force that stimulates behavior to satisfy a need

Involvement

The personal, social, and economic significance of a purchase to the consumer.

Protectionism

The practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas

Currency exchange rate

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

Perception

The process by which a person selects, organizes, and interprets information to create a meaningful picture of the world

organizational buying behavior

The process by which organizations determine the need for goods and hen choose among alternative suppliers

Purchase Decision Process

The stages a buyer passes through in making choices about which products or services to buy

cultural symbols

Things that represent ideas or concepts in a specific culture

Buy classes

Three types of organizational buying situations: new buy, straight rebuy, or modified rebuy

Global brand

a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs

beliefs

a consumer's perceptions of how a product or brand performs

Brand Loyalty

a favorable attitude toward and consistent purchase of a single brand over time.

market-product grid

a framework relating the segments of a market to products or marketing actions of the firm

perceptual map

a means of displaying the position of products or brands in consumers' minds

Multidomestic Marketing strategy

a multinational firm's strategy of offering as many different product variations, brand names, and advertising programs as countries in which it does business

gray market

a situation in which products are sold through unauthorized channels of distribution

values

a society's personally or socially preferable modes of conduct or states of existence that tend to persist over time

attitude

a tendency to respond to something in a consistently favorable or unfavorably way

Market segmentation

aggregates potential buyers into groups that have common needs and will respond similarly to a marketing action

Product repositioning

changing the place a product occupies in consumers' minds relative to competitive products

global consumers

consumer groups living around the world who have similar needs or seek similar benefits from products or services

observational data

facts and figures obtained by watching, either mechanically or in person, how people behave

primary data

facts and figures that are newly collected for a project

secondary data

facts and figures that have already been recorded before the project at hand

reverse auction

occurs when a buyer communicates a need for something and would-be suppliers bid in competition with each other

e-marketplaces

online trading communities that bring together buyers and supplier organizations

Word of Mouth

people influencing each other in personal conversations

Exporting

producing goods in one country and selling them in another

Subculture

subgroups within the larger, or national, culture with unique values, ideas, and attitudes

data

the facts and figures related to a problem

Buying center

the group of people in an organization who participates in the buying process

80/20 rule

the idea that 80 percent of a firm's sales are obtained form 20 percent of its customers

Business marketing

the marketing of products and services to firms, governments, or not-for-profit organizations

Product positioning

the place a product occupies in consumers' minds on important features relative to competitive products

global marketing strategy

the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ

Marketing research

the process of collecting and analyzing information in order to recommend actions

usage rate

the quantity consumed or the number of store visits during a specific period

market segments

the relatively homogeneous groups of prospective buyers that result from the market segmentation process

product differentiation

the strategy of using different marketing mix activities to help consumers perceive a product as being different and better than competing products

Cross-Cultural analysis

the study of similarities and differences among consumers in two or more nations or societies

direct investment

when a domestic firm actually invests in an owns a foreign subsidiary or division

dumping

when a firm sells a product in a foreign country below its domestic price or below its actual cost

Joint venture

when a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company