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Global Industry - An industry in which the strategic positions of competitors in given geographic or national markets are affected by their overall global positions.
Global firm - A firm that, by operating in more than one country, gains R&D, production, marketing, and financial advantages that are not available to purely domestic competitors.
Tariff - A tax levied by a government against certain imported products. Tariffs are designed to raise revenues or to protect domestic firms.
Quota - A limit on the amount of goods that an importing country will accept in certain product categories; it is designed to conserve on foreign exchange and to protect local industry and employment.
Exchange controls - Government limit on the amount of its foreign exchange with other countries and on its exchange rate to other currencies.
Nontariff trade barriers - Nonmonetary barriers to foreign products, such as biases against a foreign company’s bids or product standards that go against a foreign company’s product features.
Economic community - A group of nations organized to work toward common goals in the regulation of international trade (free trade zones).
Subsistence economy - the vast majority of people in a s.e. engage in simple agriculture.
Raw-material-exporting economy - these economies are rich in one or more natural resources but poor in other ways. Much of their revenue comes from exporting these resources.
Industrializing economies - manufacturing accounts for 10 to 20 percent of the country’s economy.
Industrial economies - are major exporters of manufactured goods and investment funds.
Income distribution - (1)very low family incomes (2)mostly low family incomes (3)very low/very high family incomes (4)low/medium/high family income (5)mostly medium family incomes
Countertrade - International trade involving the direct or indirect exchange of goods for other goods instead of cash. Forms include barter, compensation(buyback), and counterpurchase.
Exporting - Entering a foreign market by sending products and selling them through international marketing middlemen (indirect exporting) or through the company’s own department, branch, or sales representatives or agents (direct exporting).
Joint venturing - Entering fo.mkt. by joining with for. Companies to produce or market a product or service.
Licensing - a company enters into an agreement with a licensee in the foreign market, offering the right to use a manufacturing process, trademark, patent, trade secret, or other item of value for a fee or royalty.
Contract manufacturing - A joint venture in which a company contracts with manufacturers in a foreign market to produce the product.
Management contracting - A JV in which the domestic firm supplies the management know-how to a foreign company that supplies the capital; the domestic firm exports management services rather than products.
Joint ownership - A JV in which a company joins investors in a foreign market to create a local business in which the company shares joint ownership and control.
Direct investment - Entering a foreign market by developing foreign-based assembly or manufacturing facilities.
Standardized marketing mix - An international marketing strategy for using basically the same product, advertising, distribution channels, and other elements of the marketing mix in all the company’s international markets.
Adapted marketing mix - An international marketing strategy for adjusting the marketing-mix elements to each international target market, bearing more costs but hoping for a larger market share and return.
Straight product extension - Marketing a product in a foreign market without any change.
Product adaptation - Adapting a product to meet local conditions or wants in foreign markets.
Product invention - Creating new products or services for foreign markets.
Communication adaptation - A global communication strategy of fully adapting advertising messages to local markets.
Whole-channel view - Designing international channels that take into account all the necessary links in distributing the seller’s products to final buyers, including the sellers headquarters organisation, channels between nations, and channels within nations.
Possible advertising objectives - to inform, to persuade, to remind
Advertising objective - A specific communication task to be accomplished with a specific target audience during a specific period of time.
Informative advertising - Advertising used to inform consumers about a new product or feature and to build primary demand.
Persuasive advertising - Advertising used to build selective demand for a brand by persuading customers that it offers the best quality for their money.
Comparison advertising - Advertising that compares one brand directly or indirectly to one or more other brands.
Reminder advertising - Advertising used to keep consumers thinking about a product.
Selective demand - the demand for a given brand of a product or service.
Primary demand - The level of total demand for al brands of a given product or service- for example, the total demand for cars.
Message execution - Slice of life, Lifestyle, Fantasy, Mood or image, Musical, Personality symbol, Technical expertise, Scientific evidence, Testimonial evidence
Reach - the percentage of people in the target market exposed to an ad campaign during a given period.
Frequency - the number of times the average person in the target market is exposed to an adv. message during a given period.
Media impact - The qualitative value of a message exposure through a given medium.
Media vehicles - Specific media within each general media type, such as specific magazines, tv shows, or radio programs.
Measuring of communication effect - advertising pretesting (direct rating, portfolio tests, laboratory tests); posttesting (recall, recognition tests)
Sales promotion - Short term incentives to encourage purchase or sales of a product or service.
Consumer promotion - Sales promotion designed to stimulate consumer purchasing (coupons, contests, sweepstakes, rebates, rewards etc.)
Trade promotion - sls.promo. designed to gain reseller support and to improve reseller selling efforts (discounts, allowances, free goods, cooperative advertising, conventions etc.)
Sales force promotion - sls.promo. des. to motivate the sales force and make sales force selling more effective (bonuses, contests, sales rallies)
Samples - Offers to consumers of a trial amount of a product.
Coupons - Certificates that give buyers a saving when they purchase a specified product.
Cash refund offers (rebates) - Offers to refund part of the purchase price of a product to consumers who send a ”proof of purchase” to the manufacturer.
Price packs (cents-off deals) - Reduced prices that are marked by the producer directly on the label or package.
Premiums - goods offered either free or at low cost as an incentive to buy a product.
Advertising specialties - Useful articles imprinted with an advertiser’s name, given as gifts to consumers.
Patronage rewards - Cash or other rewards for the regular use of a certain company’s products or services.
Point of purchase (POP) promotions - Displays and demonstrations that take place at the point of purchase or sale.
Contests, sweepstakes, games - Promotional events that give consumers the chance to win something by luck or through extra efforts.
Discount - A straight reduction in price on purchases during a stated period of time.
Allowance - Promotional money paid to retailers for the featuring of a product.
Public relations - Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Publicity - Activities to promote a company or it products by planting news about it in media not paid for by the sponsor.
Customer-centered company - A company that focuses on customer developments in designing its marketing strategies and on delievering superior value to its target customers.
Customer delivered value - The consumer’s assessment of the products’ overall capacity to satisfy his or her needs. The difference between total customer value and total customer cost of a marketing offer-”profit” to the costumer.
Total customer value - The total of all the products, services, personnel, and image values that a buyer receives from a marketing offer.
Total customer cost - The total of all monetary, time, energy, and psychic costs associated with a marketing offer.
Value chain - A major tool for identifying ways to create more customer value.
Customer value delivery system - The system made up of the value chains of the company and its suppliers, distributors, and ultimately customers who work together to deliver value to customers.
Relationships marketing - The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.
Customer lifetime value - The amount by which revenues from a given customer over time will exceed the company’s costs of attracting, selling, and servicing that customer.
Quality - The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs.
Retailing - All activities involved in selling goods or services directly to final consumers for their personal, nonbusiness use.
Retailers - Businesses whose sales come primarily from retailing.
Franchise - A contractual association between a manufacturer, wholesaler, or service organisation (a franchiser) and independent businesspeople (franchisees) who buy the right to own and operate one or more units in the franchise system.
Direct marketing - Marketing through various advertising media that interact directly with consumers, generally calling for the consumer to make a direct response.
Wheel of retailing concept - A concept of retailing that states that new types of retailers usually begin as low-margin, low-price, low-status operations but later evolve into higher-priced, higher-service operations, eventually becoming like the conventional retailers they replaced.
Wholesaling - All activities involved in selling goods and services to those buying for resale or business use.
Merchant wholesalers - Independently owned businesses that take title to the merchandise they handle.
Broker - A wholesaler who does not take title to goods and whose function is to bring buyers and sellers together and assist in negotiation.
Agent - does not take title to goods, represents buyers or sellers
Service - Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
Service intangibility - A major characteristic of services-they cannot be seen, felt, tasted, heard, or smelled before they are bought.
Service inseparability - maj. charact. Of services-they are produced and consumed at the same time and cannot be separated from their providers, whether the providers are people or machines.
Service variability - mj.charact. of services-their quality may vary greatly, depending on who provides them and when, where, and how.
Service perishability - maj.charact. of services-they cannot be stored for later sale or use.
Internal Marketing - Marketing by a service firm to train and effectively motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction.
Interactive Marketing - mrkt. by a service firm that recognizes that perceived service quality depends heavily on the quality of buyer-seller interaction.
Organization Marketing - Activities undertaken to create, maintain, or change attitudes and behaviour of target audiences toward an organization.
Organization image - The way an individual or a group sees an organization.
Person marketing - Activities undertaken to create, maintain, or change attitudes and behaviour of target audiences toward a particular person.
Place marketing - Activities undertaken to create, maintain, or change attitudes and behaviour of target audiences toward particular places.
Social marketing - The design, implementation, and control of programs seeking to increase the acceptability of a social idea, cause, or practice among a target group.
Strategic planning - the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities. It relies on developing a clear company mission, supporting objectives, a sound business portfolio, and coordinated functional strategies.
Mission statement - a statement of the organization’s purpose-what it wants to accomplish in the larger environment.
Business portfolio - the collection of businesses and products that make up the company.
Portfolio analysis - tool by which management identifies and evaluates the various businesses that make up the company.
Strategic business unit (SBU) - unit of the company that has a separate mission and objectives and that can be planned independently from other company businesses. An SBU can be a company division, a product line within a division, or sometimes a single product or brand.
Growth-share matrix - portfolio-planning method that evaluates a company’s strategic business units in terms of their market growth rate and relative market share. SBUs are classified as stars, cash cows, question marks, or dogs.
Stars - High-growth, high-share businesses or products that often require heavy investment to finance their rapid growth.
Cash cows - low-growth, high-share businesses or products; established and successful units that generate cash the company uses to pay its bills and support other business units that need investments.
Question marks - low-share business units in high-growth markets that require a lot of cash in order to hold their share or become stars.
Dogs - low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash.
Product/market expansion grid - A portfolio planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.
Market penetration - strategy for company growth by increasing sales of current products to current market segments without changing the product in any way.
Market development - strategy for company growth by identifying and developing new market segments for current company products.
Product development - strategy for company growth by offering modified or new products to current market segments. Developing the product concept into a physical product in order to assure that the product idea can be turned into a workable product.
Diversification - strategy for company growth by starting up or acquiring businesses outside the company’s current products and markets.
Marketing process - (1) analyzing marketing opportunities;(2) selecting target markets;(3) developing the marketing mix;(4) managing the marketing effort.
Market segmentation - dividing a market into distinct groups of buyers with different needs, characteristics, or behaviour who might require separate products or marketing mixes.
Market segment - group of consumers who respond in a similar way to a given set of marketing stimuli.
Market targeting - process of evaluating each market segment’s attractiveness and selecting one or more segments to enter.
Market positioning - arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers. Formulating competitive
positioning for a product and a detailed marketing mix.
Marketing mix - the set of controllable tactical marketing tools- product, price, place, promotion- that the firm blends to produce the response it wants in the target market.
Executive summary - opening section of the marketing plan that presents a short summary of the main goals and recommendations to be presented in the plan.
Marketing strategy - marketing logic by which the business unit hopes to achieve its marketing objectives.
Marketing implementations - process that turns marketing strategies and plans into marketing actions in order to accomplish strategic marketing objectives.
Marketing control - process of measuring and evaluating the results of marketing strategies and plans, and taking corrective action to ensure that marketing objectives are attained.
Marketing audit - comprehensive, systematic, independent, and periodic examination of a company’s environment, objectives, strategies, and activities to determine problem areas and opportunities and to recommend a plan of action to improve the company’s marketing performance.