exam 1 Flashcards
customer satisfaction
customers’ evaluation of a good or service in terms of whether it has met their needs and expectations
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
Relationship marketing
a strategy that focuses on keeping and improving relationships with current customers
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
on-demand marketing
delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer’s decision and buying process
production orientation
a philosophy that focuses on the internal capabilities of the firm rather than on the desires and needs of the marketplace
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
exchange
people giving up something in order to receive something else they would rather have
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
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
empowerment
delegation of authority to solve customers’ problems quickly—usually by the first person the customer notifies regarding a problem
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
customer value
the relationship between benefits and the sacrifice necessary to obtain those benefits
Teamwork
collaborative efforts of people to accomplish common objectives
product development
a marketing strategy that entails the creation of new products for present markets
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
Exporting
selling domestically produced products to buyers in other countries
Experience curves
curves that show costs declining at a predictable rate as experience with a product increases
market penetration
a marketing strategy that tries to increase market share among existing customers
marketing objective
a statement of what is to be accomplished through marketing activities
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
SWOT analysis
identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
joint venture
when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
inshoring
returning production jobs to the United States
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
Generation X
people born between 1965 and 1978
virtue
a character trait valued as being good
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
baby boomers
people born between 1946 and 1964
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
global marketing standardization
production of uniform products that can be sold the same way all over the world
capital intensive
using more capital than labor in the production process
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
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
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
marketing myopia
defining a business in terms of goods and services rather than in terms of the benefits customers seek
Consumer Product Safety Commission (CPSC)
a federal agency established to protect the health and safety of consumers in and around their homes
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
sustainable competitive advantage
an advantage that cannot be copied by 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
cash cow
in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
Planning
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
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
deontological theory
ethical theory that states that people should adhere to their obligations and duties when analyzing an ethical dilemma
Inflation
a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
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
buyer for export
an intermediary in the global market that assumes all ownership risks and sells globally for its own account
cause-related marketing
the cooperative marketing efforts between a for-profit firm and a nonprofit organization
Licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
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
multinational corporation
a company that is heavily engaged in international trade, beyond exporting and importing
World Bank
an international bank that offers low-interest loans, advice, and information to developing nations
outsourcing
sending U.S. jobs abroad
problem child
in the portfolio matrix, a business unit that shows rapid growth but poor profit margins
dog
in the portfolio matrix, a business unit that has low growth potential and a small market share
social control
any means used to maintain behavioral norms and regulate conflict
Mercosur
the largest Latin American trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, and Venezuela
recession
a period of economic activity characterized by negative growth, which reduces demand for goods and services
Strategic planning
the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities
Green marketing
the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment
Millennials
people born between 1979 and 1994
Corporate social responsibility (CSR)
a business’s concern for society’s welfare
niche competitive advantage
the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
Ethics
the moral principles or values that generally govern the conduct of an individual or a group
General Agreement on Tariffs and Trade (GATT)
a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements
star
in the portfolio matrix, a business unit that is a fast-growing market leader
Purchasing power
a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
Global marketing
marketing that targets markets throughout the world
contract manufacturing
private label manufacturing by a foreign company
Behavioral norms
standards of proper or acceptable behavior. Several modes of social control are important to marketing
utilitarian ethical theory
ethical theory that is founded on the ability to predict the consequences of an action
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
casuist ethical theory
ethical theory that compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes
exchange rate
.the price of one country’s currency in terms of another country’s currency
cost competitive advantage
being the low-cost competitor in an industry while maintaining satisfactory profit margins
strategic business units (SBUs)
a subgroup of a single business or collection of related businesses within the larger organization
export broker
an intermediary who plays the traditional broker’s role by bringing buyer and seller together
Market development
a marketing strategy that entails attracting new customers to existing products
Evaluation
gauging the extent to which the marketing objectives have been achieved during the specified time period
multidomestic strategy
when multinational firms enable individual subsidiaries to compete independently in domestic markets
Marketing planning
designing activities relating to marketing objectives and the changing marketing environment
Applied research
research that attempts to develop new or improved products
Food and Drug Administration (FDA)
a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products
Uruguay Round
a trade agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
Export agents
an intermediary who acts like a manufacturer’s agent for the exporter; the export agent lives in the foreign market
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
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
direct foreign investment
active ownership of a foreign company or of overseas manufacturing or marketing facilities
balance of payments
the difference between a country’s total payments to other countries and its total receipts from other countries
portfolio matrix
a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
demography
the study of people’s vital statistics, such as age, race and ethnicity, and location
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
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
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
Morals
the rules people develop as a result of cultural values and norms
marketing plan
a written document that acts as a guidebook of marketing activities for the marketing manager
balance of trade
the difference between the value of a country’s exports and the value of its imports over a given period
marketing mix
a unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
code of ethics
a guideline to help marketing managers and other employees make better decisions
Federal Trade Commission (FTC)
a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce
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
Diversification
a strategy of increasing sales by introducing new products into new markets
World Trade Organization (WTO)
a trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)
marketing audit
a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
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
gross domestic products (GDP)
the total market value of all final goods and services produced in a country for a given time period
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
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
European Union (EU)
a free trade zone encompassing 28 European countries
Basic research
pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
