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Flashcards in exam 1 Deck (110):
1

customer satisfaction

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

2

market oriented

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

3

Relationship marketing

a strategy that focuses on keeping and improving relationships with current customers

4

marketing

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

5

on-demand marketing

delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process

6

production orientation

a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace

7

societal marketing orientation

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 interests

8

exchange

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

9

marketing concept

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

10

Customer relationship management (CRM)

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

11

empowerment

delegation of authority to solve customers’ problems quickly—usually by the first person the customer notifies regarding a problem

12

sales orientation

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

13

customer value

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

14

Teamwork

collaborative efforts of people to accomplish common objectives

15

product development

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

16

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

17

Exporting

selling domestically produced products to buyers in other countries

18

Experience curves

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

19

market penetration

a marketing strategy that tries to increase market share among existing customers

20

marketing objective

a statement of what is to be accomplished through marketing activities

21

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 that group, resulting in mutually satisfying exchanges

22

SWOT analysis

identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)

23

joint venture

when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity

24

inshoring

returning production jobs to the United States

25

stakeholder theory

ethical theory stating that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm’s operation

26

Generation X

people born between 1965 and 1978

27

virtue

a character trait valued as being good

28

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

29

baby boomers

people born between 1946 and 1964

30

Implementation

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

31

global marketing standardization

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

32

capital intensive

using more capital than labor in the production process

33

component lifestyles

the practice of choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle

34

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

35

market opportunity analysis (MOA)

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

36

marketing myopia

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

37

Consumer Product Safety Commission (CPSC)

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

38

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

39

sustainable competitive advantage

an advantage that cannot be copied by the competition

40

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

41

cash cow

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

42

Planning

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

43

floating exchange rates

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

44

deontological theory

ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma

45

Inflation

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

46

sustainability

the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profits and help the world at the same time

47

buyer for export

an intermediary in the global market that assumes all ownership risks and sells globally for its own account

48

cause-related marketing

the cooperative marketing efforts between a for-profit firm and a nonprofit organization

49

Licensing

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

50

Control

provides the mechanisms for evaluating marketing results in light of the plan’s objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines

51

multinational corporation

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

52

World Bank

an international bank that offers low-interest loans, advice, and information to developing nations

53

outsourcing

sending U.S. jobs abroad

54

problem child

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

55

dog

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

56

social control

any means used to maintain behavioral norms and regulate conflict

57

Mercosur

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

58

recession

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

59

Strategic planning

the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities

60

Green marketing

the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment

61

Millennials

people born between 1979 and 1994

62

Corporate social responsibility (CSR)

a business’s concern for society’s welfare

63

niche competitive advantage

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

64

Ethics

the moral principles or values that generally govern the conduct of an individual or a group

65

General Agreement on Tariffs and Trade (GATT)

a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements

66

star

in the portfolio matrix, a business unit that is a fast-growing market leader

67

Purchasing power

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

68

Global marketing

marketing that targets markets throughout the world

69

contract manufacturing

private label manufacturing by a foreign company

70

Behavioral norms

standards of proper or acceptable behavior. Several modes of social control are important to marketing

71

utilitarian ethical theory

ethical theory that is founded on the ability to predict the consequences of an action

72

Moral relativism

an ethical theory of time-and-place ethics; that is, the belief that ethical truths depend on the individuals and groups holding them

73

casuist ethical theory

ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes

74

exchange rate

.the price of one country’s currency in terms of another country’s currency

75

cost competitive advantage

being the low-cost competitor in an industry while maintaining satisfactory profit margins

76

strategic business units (SBUs)

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

77

export broker

an intermediary who plays the traditional broker’s role by bringing buyer and seller together

78

Market development

a marketing strategy that entails attracting new customers to existing products

79

Evaluation

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

80

multidomestic strategy

when multinational firms enable individual subsidiaries to compete independently in domestic markets

81

Marketing planning

designing activities relating to marketing objectives and the changing marketing environment

82

Applied research

research that attempts to develop new or improved products

83

Food and Drug Administration (FDA)

a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products

84

Uruguay Round

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

85

Export agents

an intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market

86

International Monetary Fund (IMF)

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

87

Foreign Corrupt Practices Act (FCPA)

a law that prohibits U.S. corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries

88

direct foreign investment

active ownership of a foreign company or of overseas manufacturing or marketing facilities

89

balance of payments

the difference between a country’s total payments to other countries and its total receipts from other countries

90

portfolio matrix

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

91

demography

the study of people’s vital statistics, such as age, race and ethnicity, and location

92

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 United States

93

North American Free Trade Agreement (NAFTA)

an agreement between Canada, the United States, and Mexico that created the world’s then-largest free trade zone

94

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

95

Morals

the rules people develop as a result of cultural values and norms

96

marketing plan

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

97

balance of trade

the difference between the value of a country’s exports and the value of its imports over a given period

98

marketing mix

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

99

code of ethics

a guideline to help marketing managers and other employees make better decisions

100

Federal Trade Commission (FTC)

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

101

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 of the exporter

102

Diversification

a strategy of increasing sales by introducing new products into new markets

103

World Trade Organization (WTO)

a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)

104

marketing audit

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

105

pyramid of corporate social responsibility

a model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that a firm’s economic performance supports the entire structure

106

gross domestic products (GDP)

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

107

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

108

countertrade

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

109

European Union (EU)

a free trade zone encompassing 28 European countries

110

Basic research

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