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  1. Globalization
    Refers to the processes by which goods, services, capital, people,information, and ideas flow across national borders
  2. Globalization of Production
    • - Also known as offshoring; refers to manufacturers'procurement of
    • goods and services from around the globe to take advantage ofnational
    • differences in the cost and quality of various factors of production
    • (e.g.,labor, energy, land, capital).
  3. Offshoring
    Globalization of Production
  4. General Agreement on Tariffs and Trade (GATT)
    Organization established tolower trade barriers, such as high tariffs on imported goods and restrictions on thenumber and types of imported products that inhibited the free flow of goods acrossborders.
  5. International Monetary Fund (IMF)
    Established with the original GeneralAgreement on Tariffs and Trade (GATT); primary purpose is to promoteinternational monetary cooperation and facilitate the expansion and growth ofinternational trade.
  6. World Trade Organization (WTO)
    Replaced the GATT in 1994; differs fromthe GATT in that the WTO is an established institution based in Geneva,Switzerland, instead of simply an agreement; represents the only internationalorganization that deals with the global rules of trade among nations.
  7. World Bank Group
    A development bank that provides loans, policy advice,technical assistance, and knowledge-sharing services to low- and middle-incomecountries in an attempt to reduce poverty in the developing world.
  8. Trade Deficit
    Results when a country imports more goods than exports
  9. Trade Surplus
    When a country exports more than it imports
  10. Gross Domestic Product (GDP)
    Defined as the market value of the goods andservices produced by a country in a year; the most widely used standardizedmeasure of output.
  11. Gross National Income (GNI)
    Consists of GDP plus the net income earned frominvestments abroad (minus any payments made to nonresidents who contribute tothe domestic economy).
  12. Purchasing Power Parity (PPP)
    A theory that states that if the exchange rates oftwo countries are in equilibrium, a product purchased in one will cost the same inthe other, expressed in the same currency.
  13. Human Development Index (HDI)
    A composite measure of three indicators ofthe quality of life in different countries: life expectancy at birth, educationalattainment, and whether the average incomes are sufficient to meet the basic needsof life in that country.
  14. Infrastructure
    The basic facilities, services, and installations needed for acommunity or society to function, such as transportation and communicationssystems, water and power lines, and public institutions like schools, post offices,and prisons.
  15. Tariff
    A tax levied on a good imported into a country; also called a duty
  16. Duty
    its the same as a tariff
  17. Dumping
    The practice of selling a good in a foreign market at a price that islower than its domestic price or below its cost.
  18. Quota
    Designates the maximum quantity of a product that may be brought into acountry during a specified time period.
  19. Boycott
    A group's refusal to deal commercially with some organization to protestagainst its policies.
  20. Exchange Control
    Refers to the regulation of a country's currency exchange rate.
  21. Exchange Rate
    The measure of how much one currency is worth in relation toanother.
  22. CounterTrade
    Trade between two countries where goods are traded for othergoods and not for hard currency.
  23. Trade Agreements
    Intergovernmental agreements designed to manage andpromote trade activities for specific regions
  24. Trade Bloc
    Consists of those countries that have signed a particular tradeagreement.
  25. Geert Hofstede's Cultural Dimension Concept
    1. Power Distance - Willingness to accept social inequality as natural.2. Uncertainty avoidance - The extent to which the society relies onorderliness, consistency, structure, and formalized procedures to address situationsthat arise in daily life.3. Individualism - Perceived obligation to and dependence on groups.4. Masculinity - The extent to which dominant values are male oriented. Alower masculinity ranking indicates that men and women are treated equally in allaspects of society; a higher masculinity ranking suggests that men dominate inpositions of power.5. Time Orientation - Short- versus long-term orientation. A country thattends to have a long-term orientation values long-term commitments and is willingto accept a longer time horizon for, say, the success of a new product introduction.
  26. Exporting
    Producing goods in one country and selling them in another.
  27. Franchising
    A contractual agreement between a franchisor and a franchisee thatallows the franchisee to operate a business using a name and format developed andsupported by the franchisor
  28. Strategic Alliance
    A collaborative relationship between independent firms,though the partnering firms do not create an equity partnership; that is, they do notinvest in one another.
  29. Joint Venture
    Formed when a firm entering a new market pools its resourceswith those of a local firm to form a new company in which ownership, control, andprofits are shared.
  30. Direct Investment
    When a firm maintains 100 percent ownership of its plants,operation facilities, and offices in a foreign country, often though the formation ofwholly owned subsidiaries.
  31. Segmentation
    • Step 1: Strategy or Objective: Segmentation Strategies
    • Step 2: Describe Segments
    • Step 3: Evaluate Segment Attractiveness
    • Step 4: Select Target MarketPositioning
    • Step 5: Identify and Develop Positioning Strategy
  32. Differentiated
    A strategy through which a firm targets severalmarket segments with a different offering for each
  33. Undifferentiated or Mass Marketing
    A marketing strategy afirm can use if the product or service is perceived to provide the same benefits toeveryone, with no need to develop separate strategies for different groups.
  34. Concentrated
    A marketing strategy of selecting a single,primary target market and focusing all energies on providing a product to fit thatmarket's needs.
  35. Micro-marketing or One-to-one
    An extreme form ofsegmentation that tailors a product or service to suit an individual customer's wantsor needs; also called one-to-one marketing.
  36. Mass Customization
    The practice of interacting on a one-toonebasis with many people to create custom-made products or services; providingone-to-one marketing to the masses.
  37. Geographic Segmentation
    The grouping of consumers on thebasis of where they live
  38. Demographic Segmentation
    The grouping of consumersaccording to easily measured, objective characteristics such as age, gender,income, and education.
  39. Pyschographics
    Used in segmentation; delves into howconsumers describe themselves; allows people to describe themselves using thosecharacteristics that help them choose how they occupy their time (behavior) andwhat underlying psychological reasons determine those choices
  40. Self-Values
    Goals for life, not just the goals one wantsto accomplish in a day; a component of psychographics that refers to overridingdesires that drive how a person lives his or her life.
  41. Self-Concept
    The image a person has of him- orherself; a component of psychographics
  42. Lifestyles
    Refers to the way a person lives his or herlife to achieve goals; a component of psychographics
  43. Vals
    a psychographic tool developed by SRI ConsultingBusiness Intelligence; classifies consumers into eight segments; innovators,thinkers, believers, achievers, strivers, experiencers, makers, or survivors.
  44. Benefit Segmentation
    The grouping of consumers on thebasis of the benefits they derive from products or services
  45. Geodemographic Segmentation
    The grouping of consumerson the basis of a combination of geographic, demographic, and lifestylecharacteristics
  46. Loyalty Segmentation
    Strategy of investing in loyaltyinitiatives to retain the firm's most profitable customers.
  47. Substantial
    is the market big enough to generate sufficientprofits?
  48. Reachable
    can the market be reached (or accessed) throughpersuasive communication and product distribution?
  49. Responsive
    will the segment react similarly and positively tothe firm's offering?
  50. Profitable
    focuses on the potential profitability of eachsegment, both current and future; regards market growth, market competitiveness,and market access.
  51. Perceptual Map
    Displays, in two or more dimensions, theposition of products or brands in the consumer's mind.
  52. Ideal Point
    The position at which a particular marketsegment's ideal product would lie on a perceptual map
  53. Marketing Research
    A set of techniques and principles for systematicallycollecting, recording, analyzing, and interpreting data that can aid decision makersinvolved in marketing goods, services, or ideas.
  54. Marketing Information Systems (MkIS)
    A set of procedures and methods thatapply to the regular, planned collection, analysis, and presentation of informationthat then may be used in marketing decisions.
  55. Data Warehouse
    Large computer files that store millions and even billions ofpieces of individual data.
  56. Data Mining
    The use of a variety of statistical analysis tools to uncoverpreviously unknown patterns in the data stored in databases or relationships amongvariables.
  57. The Marketing Research Process
    • Step 1: Defining Objectives
    • Step 2: Designing the Research Project
    • Step 3: Data Collection
    • Step 4: Analyzing Data
    • Step 5: Presenting Results
  58. Secondary Data
    Pieces of information that have already beencollected from other sources and usually are readily available
  59. Syndicated Data
    Data available for a fee from commercial researchfirms such as Information Resources Inc. (IRI), National Purchase Diary Panel,and ACNielsen.
  60. Primary Data
    Data collected to address specific research needs
  61. Exploratory Research
    Attempts to begin to understand thephenomenon of interest; also provides initial information when the problem lacksany clear definition.
  62. Observation
    An exploratory research method that entails examiningpurchase and consumption behaviors through personal or video camera scrutiny
  63. In depth Interview
    An exploratory research technique in whichtrained researchers ask questions, listen to and record the answers, and then poseadditional questions to clarify or expand on a particular issue
  64. Focus Group Interview
    A research technique in which a smallgroup of persons (usually 8 to 12) comes together for an intensive discussion abouta particular topic, with the conversation guided by a trained moderator using anunstructured method of inquiry.
  65. Projective Technique
    A type of qualitative research in whichsubjects are provided a scenario and asked to express their thoughts and feelingsabout it.
  66. Conclusive Research
    Provides the information needed to confirmpreliminary insights, which managers can use to pursue appropriate courses ofaction.
  67. Survey
    A systematic means of collecting information from peoplethat generally uses a questionnaire.Questionnaire - A form that features a set of questions designedto gather information from respondents and thereby accomplish the researchers'objectives; questions can be either unstructured or structured.Unstructured Questions - Open ended questions thatallow respondents to answer in their own wordsStructured Questions - Closed-ended questions for whicha discrete set of response alternatives, or specific answers, is provided forrespondents to evaluate.
  68. Experimental Research
    A type of quantitative research thatsystematically manipulates one or more variables to determine which variable hasa casual effect on another variable.
  69. Scanner Research
    A type of quantitative research that uses dataobtained from scanner readings of UPC codes at checkout counters
  70. Panel Research
    A type of quantitative research that involvescollecting information from a group of consumers (the panel) over time; from asurvey or a record of purchases
  71. Data
    Raw numbers or facts
  72. Information
    Organized, analyzed, interpreted data that offers valueto marketers.
  73. Churn
    The number of consumers who stop using a product orservice, divided by the average number of consumers of that product or service
  74. Product
    Anything that is of value to a consumer and can be offeredthrough a voluntary marketing exchange.
  75. Product Assortment
    The complete set of all products offered by a firm;also called product mix.
  76. Product Lines
    Groups of associated items, such as those that consumersuse together or think of s part of a group of similar products
  77. Product Category
    An assortment of items that the customer sees asreasonable substitutes for one another
  78. Brand
    The name, term, design, symbol, or any other features that identifyone seller's good or service as distinct from those of other sellers
  79. Breadth
    Number of product lines offered by a firm; also known as variety.
  80. Depth
    The number of categories within a product line
  81. Stock Keeping Units (SKUs)
    Individual items within each productcategory; the smallest unit available for inventory control
  82. Category Depth
    The number of stock keeping units (SKUs) within acategory
  83. Brand Equity
    The set of assists and liabilities linked to a brand that add toor subtract from the value provided by the product or service
  84. Licensed Brand
    An agreement allows one firm to use another's name,image, and/or logo for a fee.
  85. Brand Awareness
    Measures how many consumers in a market arefamiliar with the brand and what it stands for
  86. Perceived Value
    The relationship between a product or service's benefitsand its cost.
  87. Brand Association
    The mental links that consumers make between abrand and its key product attributes; can involve a logo, slogan, or famouspersonality.
  88. Brand Personality
    Refers to a set of human characteristics associated witha brand, which has symbolic or self-expressive meanings for consumers
  89. Innovation
    The process by which ideas are transformed into new productsand services that will help the firm grow
  90. Pioneers
    New product introductions that establish a completely newmarket or radically change both the rules of competition and consumer preferencesin a market; also called breakthroughs
  91. First Movers
    Product pioneers that are the fist to create a market orproduct category, making them readily recognizable to consumers and thusestablishing a commanding and early market share lead.
  92. Innovators
    Those buyers who want to be the first to have the new productor service.
  93. Early Adopters
    The second group of consumers in the diffusion ofinnovation model, after innovators, to use a product or service innovation;generally don't like to take as much risk as innovators but instead wait andpurchase the product after careful review
  94. Early Majority
    A group of consumers in the diffusion of innovationmodel that represent approximately 34 percent of the population; members don'tlike to take much risk and therefore tend to wait until bugs are work out of aparticular product or service; few new products and services can be profitable untilthis large group buys them.
  95. Late Majority
    The last group of buyers to enter a new product market;when they do, the product has achieved its full market potential.
  96. Laggards
    Consumers who like to avoid change and rely on traditionalproducts until they are no longer available.
  97. Clinical Trial
    Medical test of the safety and efficacy of a new drug ortreatment with human subjects.
  98. Reverse Engineering
    Involves taking apart a competitor's product,analyzing it, and creating an improved product that does not infringe on thecompetitor's patents.
  99. Lead Users
    Innovative product users who modify existing productsaccording to their own ideas to suit their specific needs
  100. Concepts
    Brief written descriptions of a product or service; its technology,working principles, and forms; and what customer needs it would satisfy
  101. Product Development
    Also called product design; entails a process ofbalancing various engineering, manufacturing, marketing, and economicconsiderations to develop a product's form and features or a service's features.
  102. Product Life Cycle
    Defines the stages that new products move through asthey enter, get established in, and ultimately leave the marketplace and therebyoffers marketers a starting point for their strategy planning
  103. Introduction Stage
    Stage of the product life cycle when innovatorsstart buying the product.
  104. Growth Stage
    Stage of the product life cycle when the productgains acceptance, demand and sales increase, and competitors emerge in theproduct category.
  105. Maturity Stage
    Stage when industry sales reach their peak, so firmstry to rejuvenate their products by adding new features or repositioning them
  106. Decline Stage
    Stage when sales decline and the product eventuallyexits the market
  107. Service
    Any intangible offering that involves a deed, performance, oreffort that cannot be physically possessed.
  108. Customer Service
    Specifically refers to human or mechanical activitiesfirms undertake to help satisfy their customers' needs and wants.
  109. Service Gap
    Results when a service fails to meet the expectations thatcustomers have about how it should be delivered.
  110. Service Quality
    Customers' perceptions of how well a service meets orexceeds their expectations.
  111. Voice of Customer (VOC) Program
    An ongoing marketing researchsystem that collects customer inputs and integrates them into managerial decisions.
  112. Zero Tolerance
    The area between customer's expectations regardingthe desired service and the minimum level of acceptable service--that is, thedifference between what the customer really wants and what he or she will acceptbefore going elsewhere.
  113. Empowerment
    In context of service delivery, means allowing employeesto make decisions about how service is provided to customers
  114. Emotional Support
    Concern for others' well-being and support of theirdecisions in a job setting.
  115. Instrumental Support
    Providing the equipment or systems needed toperform in a job setting
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Vocab flash cards for chapters 7-12
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