Marketing Test 2

Resellers

Intermediaries (wholesalers or retailers) who buy finished goods and resell them for a profit

culture

The accumulation of values, knowledge, beliefs, customs, objects, and concepts that a society uses to cope with its environment and passes on to future generations

Exchange controls

Government restrictions on the amount of a particular currency that can be bought or sold

Heterogeneous market

(individuals or organizations with diverse needs for products in the same class)

import tariff

A duty levied by a nation on goods bought outside its borders and brought into the country

embargo

A government's suspension of trade, generally directed at a particular product or with a country

Market

A group of individuals and/or organizations that have needs for products in a product class and have the ability, willingness, and authority to purchase those products.

subculture

A group of individuals whose characteristics, values, and behavior patterns are similar within the group and different from those of the surrounding culture

derived demand

Demand for business products that stems from demand for consumer products

Joint Demand

Demand involving the use of two or more items in combination to produce a product

Inelastic Demand

Demand that is not significantly altered by a price increase or decrease

Buying Behavior

The decision processes and actions of people involved in buying and using products

Consumer Buying Behavior

The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes

Gross Domestic Product

The market value of a nation's total output of goods and services for a given period

Market Segmentation

The process of dividing a total market into groups with relatively similar product needs in order to design a marketing mix that matches those needs Segmentation allows firms to better able develop a marketing mix that satisfies a portion of a heterogeneous market

importing

The purchase of products from a foreign source

exporting

The sale of products to foreign markets

Self-reference criterion

The unconscious reference to one's own cultural values, experiences, and knowledge

Cognitive dissonance

A buyer's doubts shortly after a purchase about whether the decision was the right one

reference groups

A group with which a person strongly identifies; adopts the values, attitudes, and behavior of group members

quota

A limit on the amount of goods an importing country will accept for certain product categories in a specified time period

opinion leaders

A member of an informal group who provides information about a specific topic to other group members. Likely to be most influential in high product involvement situations

joint venture

A partnership between a domestic and a foreign firm or government (2 become 1)

Personality

A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior

North American Free Trade Agreement

An agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the United States, and Mexico

Licensing

An alternative to direct investment that requires a licensee to pay a commission or royalties on sales or supplies used in manufacturing

Attitudes

An individual's enduring evaluation of feelings about and behavioral tendencies toward an object or idea

Lifestyle

An individual's pattern of living expressed through activities, interests, and opinions

Motive

An internal energizing force that directs a person's behavior toward satisfying needs or achieving goals

social class

An open aggregate of people with similar social rank

trade company

An organization that links buyers and sellers in different countries

Learning

Changes in an individual's thought processes and behavior caused by information and experience

Segmentation Variables

Characteristics of individuals, groups, or organizations used to divide a market into segments

Segmentation Variables:

Characteristics of individuals, groups, or organizations used to divide a market into segments. Demographic, Geographic, Psychographic, Behavioral

contract manufacturing

Hiring a foreign firm to produce a designated volume of the domestic firm's product or a component of it to specification

Producer markets

Individuals and business organizations that purchase products in order to make a profit by using them in producing other products or in their operations

Business Markets

Individuals or groups who purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations

Market Segment

Individuals, groups, or organizations with one or more similar characteristics that cause them to have similar product needs

Business markets

Individuals, organizations, or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in general daily operations

Undifferentiated Targeting Strategy

Is a single marketing mix directed at the entire market Should be a homogeneous market (customers have similar product needs

Geodemographic segmentation

Market segmentation that clusters people in units based on lifestyle and demographic information

Self Concept

One's view of one's self. Closely linked to personality type

strategic alliance

Partnerships formed to create global competitive advantages; represented by an agreement to work together

Psychographic

Personality: introvert, extrovert Motives: safety, status, personal appearance, affiliation, health. Lifestyle

Consumer Markets

Purchasers are household members who intend to consume or benefit from purchased products and do not buy products for the purpose of making a profit

STP

Segmenting, Targeting, and Positioning

Concentrated targeting strategy

Targeting a single market segment using one marketing mix

Differentiated Targeting Strategy

Targeting two or more segments with a marketing mix for each

cultural relativism

The concept that morality varies from one culture to another and that business practices are differentially defined as right or wrong by particular cultures

roles

actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons

family groups

have a direct impact on the buying decision Process

Consumer Misbehavior

shoplifting is an example of