Unit 2 Exam Flashcards
What is global marketing?
Marketing that targets markets throughout the world
What is global vision?
Recognizing and reacting to international market opportunities, using effective global marketing strategies
Being aware of threats from foreign competitors in all markets
What is absolute advantage?
A country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide a product
What is comparative advantage?
A country chooses to produce specific products because they can do so more efficiently than producing other products
A country should trade these products with products other countries can produce most efficiently
What is protectionism?
Aims to protect home industries from outside competition through tariffs and trade restrictions
Opposite of free trade
What is offshoring?
Sending US jobs abroad
What’s inshoring?
Returning production jobs to US
What is glocalization?
Keeping big things standard and localizing local tactics & strategies
What is a standardization strategy?
Presumes that markets throughout the world are becoming more alike and keeps the products the same across markets
What is a multidomestic strategy?
Occurs when multinational firms enable individual subsidiaries to compete independently in domestic markets
What is culture?
The language, education, religious attitudes, and social values of a particular area
What is a tariff?
A tax levied on goods entering a country
What is a quota?
A limit on the amount of a product that can enter a country
What are trade agreements and what are 2 big ones?
An agreement to stimulate international trade
EU and USMCA
What is an exchange rate?
The price of one country’s currency in terms of another country’s currency
What is the balance of trade?
The difference between the value of a country’s exports and the value of its imports over a given period
What is the balance of payments?
Measures the difference between a country’s total payments to other countries and its total receipts from other countries
What is the World Trade Organization (WTO)?
Created to foster global trade
“Most favored nation” concept that establishes that what one member does for another, it will do for all other member nations
What is value?
A personal assessment of the net worth one obtains from making a purchase
What is perceived value?
The value a customer expects to obtain from a purchase
What is customer behavior?
Processes a consumer uses to make a purchase decisions as well as to use and dispose of purchased goods or services
Includes factors that influence purchase decisions and product use
What are the steps of the consumer decision process?
- Need recognition
- Information search
- Evaluating alternatives
- Purchase decision
- Post-purchase evaluation
What is a stimulus?
Any unit of input affecting one or more of the 5 senses
What is need recognition?
The result of an imbalance between actual and desired states
What is a want?
The recognition of an unfulfilled need and a product that will satisfy it
What is an internal information search?
The process of recalling information stored in the memory
What is an external information search?
The process of seeking information in the outside environment
What is a marketing-controlled information source?
A product information source that is associated with advertising or promotion
What is a non-marketing controlled information source?
A product information source that originates with marketers promoting the product
What is an evoked set?
A group of brands resulting from an information search from which a buyer can choose
What is a jilting effect?
Anticipation of receiving a highly desirable option only to have it become inaccessible
What is cognitive dissonance?
Inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
What is an example of routine decision making and involvement?
Groceries, everyday items
Example of limited decision making and involvement:
Product that requires an appropriate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
Example of extensive decision making:
Car, home
What are cultural effects on consumer behavior?
Broadest and deepest influence on purchase decisions
Pervasive, functional, learned, and dynamic
What is subculture?
A homogenous group of people who share elements of the overall culture as well as unique elements of their own group
What is a social class?
A group of people in a society who are considered nearly equal in status or community esteem
Socialize among themselves formally and informally, sharing behavioral norms
What are reference groups?
All formal and informal groups in society that influence an individual’s purchasing behavior
What is a membership group?
A reference group with which people interact regularly in an informal, face to face manner
What is an aspirational group?
A reference group someone would like to join
What is a non-aspirational group?
A group with which an individual does not want to associate
What are family effects on consumer behavior
Projects strongest influence on values, attitudes, self-concept, and buying behavior
What is perception?
The process by which people select, organize, and interpret stimuli into a meaningful and coherent picture
What is selective exposure?
A process whereby a consumer notices certain stimuli and ignores others
What is selective distortion?
A process whereby a consumer changes or distorts information that conflicts with his/her feelings or beliefs
What is selective retention?
A process whereby a consumer remembers only that information that supports his/her personal beliefs
What are the levels of Maslow’s Hierarchy of Needs and what is a product that will satisfy each level?
Self-actualization (top) - What makes you you - hiking
Esteem - Fashionable clothes
Love/Belonging - Dating app
Safety - smoke alarm
Physiological (bottom) - shelter
What is market segmentation?
The process of dividing a market into meaningful, relatively similar, and identifiable segments or groups
What is a market segment?
A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
What are 4 criteria for successful market segments and what do they mean?
Substantial - must be large enough to warrant a special marketing mix
Measurable - data about a population within geographic boundaries
Accessible - firm must be able to reach members
Responsive - one market needs to respond differently to a certain stimuli than another
What is geographic segmentation?
Segmentation by region of a country or the world, market size, market density, or climate
What is demographic segmentation?
Segmentation by age, gender, income, ethnicity, and family life cycle
What are characteristics of the Silent Generation?
Born before 1946
Quietly persevere through hardships
Taught to play by the rules
What are some characteristics of Boomers?
1946-1964
Outspend average consumer in nearly every category
Spend time and money doing whatever is necessary to maintain vitality as they age
What are some characteristics of Gen X?
1965-1979
Sandwich generation
Latchkey kids
Best-educated
Disloyal to brands and skeptical of big business
Parents
What are some characteristics of Gen Y?
1980-1994
Idealistic
Technology-proficient
Value trustworthiness, creativity, and authenticity
Want experiences
Shop at deep-discounting stores
What are characteristics of Gen Z?
1995-2015
Work for success
Brands need to be real
Social media etiquette
Cautious
3 largest growing ethnicities in the US:
Hispanic American
African American
Asian American
What is the Family Life Cycle?
A series of stages determined by a contribution of age, marital status, and the presence or absence of children
What is psychographic segmentation?
Segmentation based on personality, motives, lifestyles, or geodemographics
What is personality?
Reflection of a person’s traits, attitudes, and habits
What is a motive?
Examples may be caring for loved ones or status
What is a lifestyle?
The way people spend their time, the importance of things around them, beliefs, and socioeconomic status
What are geodemographics?
Segmentation based on combination of neighborhood, lifestyle, and other demographic values
What is an undifferentiated target market strategy?
Views the market as one big market with not individual segments and thus uses a single marketing mix
What is a niche (concentrated) marketing mix?
A strategy used to select one segment of a market for targeted marketing efforts
What is positioning?
Developing a specific marketing mix to influence potential customers’ overall perception of a brand, product line, or organization in general
What are 4 things positioning can be based off of?
Benefits
Price
Product class
Emotion
What is perceptual mapping?
A means of displaying or graphing the location of products, brands, or groups of products in customers’ minds
What is the marketing research problem?
Determining what information is needed and how that information can be obtained efficiently and effectively
What is descriptive marketing research?
Gathering factual information
Easiest
What is diagnostic marketing research?
Analyzing descriptive information
Explaining the data
What is predictive marketing research?
Addresses “what if” questions
What is the marketing research objective?
The specific information needed to solve a marketing research problem
Objective should be to provide insightful decision-making information
What is the management decision problem?
A broad-based problem that uses marketing research in order for managers to take proper actions
What are the steps in the marketing research process?
Define the problem
Plan
Conduct secondary research
Conduct primary research
Analyze the information
Present the information
What is probability sampling?
A sample in which every element in the population has a known statistical likelihood of being selected
What is random sampling?
A sample arranged in such a way that every element of the population has an equal chance of being selected as part of the sample
What is big data?
The exponential growth in the volume, variety, and velocity of information
The development of complex, new tools to analyze and create meaning from such data
What are surveys?
A researcher interacts with people to obtain facts, opinions, and attitudes
What are mall intercepts?
A survey research method that involves interviewing people in the common areas of shopping malls
What are executive surveys?
A type of survey that involves interviewing businesspeople at their offices concerning industrial products or services
What are focus groups?
7-10 people who participate in a group discussion led by a moderator
What are 3 types of questions used on surveys?
Open ended
Closed ended
Scaled response
What is neuromarketing?
A field of marketing that studies the body’s responses to marketing stimuli?
