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MKTG Ch. 4-6

Terms in this set (89)

target market
group of people or organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges
value
strongly held and enduring belief
self-sufficiency
every person should stand on his or her own two feet
upward mobility
success would come to anyone who got an education, worked hard, and played by the rules
work ethic
hard work, dedication to family, and frugality were moral and right.
conformity
no one should expect to be treated differently from everybody else
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
demography
the study of people's vital statistics, such as age, race, ethnicity, and location
Generation Y
People born between 1979 and 1994
Generation X
people born between 1965 and 1978
baby boomers
people born between 1946 and 1964
purchasing power
a comparison of income versus the relative cost of a standard set of goods and services in different geographic areas
inflation
a measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year
recession
a period of economic activity characterized by negative growth, which reduces demand for goods and services
basic research
pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon
applied research
research that attempts to develop new or improved products
Consumer Product Safety Commission (CPSC)
a federal agency established to protect the health and safety of consumers in and around their homes
Food and Drug Association (FDA)
a federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products
Federal Trade Commission (FTC)
a federal agency empowered to prevent persons or corporations from using unfair methods of competition in commence
global marketing
marketing that targets markets throughout the world
global vision
recognizing and reacting to int'l marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
gross domestic product
the total market value of all final goods and services produced in a country for a given time period
job outsourcing
sending US jobs abroad
multinational corporation
a company that is heavily engaged in int'l trade, beyond exporting and importing
capital intensive
using more capital than labor in the production process
global marketing standardization
production of uniform products that can be sold the same way all over the world
multidomestic strategy
when multinational firms enable individual subsidiaries to compete independently in domestic markets
Mercosur
the largest Latin American trade agreement, includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uraguay
Uruguay Round
an agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
World Trade Organization
a trade organization that replaced the old General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade
a trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements
North American Free Trade Agreement
an agreement between Canada, the United States, and Mexico that created the world's then-largest free trade zone
Central America Free Trade Agreement
a trade agreement, instituted in 2005, that includes Costa Rica, the DR, El Salvador, Guatemala, Honduras, Nicaragua, and the United States
European Union
a free trade zone encompassing 27 European countries
World Bank
an int'l bank that offers low-interest loans, advice, and information to developing nations
International Monetary Fund
an int'l organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
Group of Twenty (G-20)
a forum for int'l economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability
exporting
selling domestically produced products to buyers in other countries
buyers for export
an intermediary in the global market who assumes all ownership risks and sells globally for its own account
export broker
an intermediary who plays the traditional broker's role by bringing buyer and seller together
export agent
an intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market
licensing
the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
contract manufacturing
private label manufacturing by a foreign company
joint venture
when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
direct foreign investment
active ownership of a foreign company or of overseas manufacturing or marketing facilities
floating exchanging rates
a system in which prices of different currencies move up and down based on the demand for and the supply of each currency
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
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
consumer behavior
processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use
consumer decision-making process
a 5-step process used by consumers when buying goods or services
need recognition
result of an imbalance between actual and desired states
want
recognition of an unfilled need and a product that will satisfy it
stimulus
any unit of input affecting one or more of the 5 senses: sight, smell, taste, touch, hearing
internal information research
the process of recalling past information stored in the memory
external information research
the process of seeking information in the outside environment
marketing-controlled information source
a product information source that is not associated with advertising or promotion
evoked set (consideration set)
a group of brands, resulting from an information search, from which a buyer can choose
cognitive dissonance
inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions
involvement
the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior
routine response behavior
the type of decision making exhibited by consumers buying frequently purchased, low-cost goods and services; requires little search and decision time
limited decision making
the type of decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category
extensive decision making
the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information
culture
the set of values, norms, attitudes, and other meaningful symbols that shape human behavior and the artifacts, or products, of that behavior as they are transmitted from one generation to the next
value
the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct
subculture
a homogeneous group of people who share elements of the overall culture as well as unique elements of their own group
social class
a group of pple in a society who are considered nearly equal in status or community esteem, who regularly socialize among themselves both formally and informally, and who share behavioral norms
reference group
a group in society that influences an individual's purchasing behavior
primary membership group
a reference group with which people interact regularly in an informal, face-to-face manner, such as family, friends, and co-workers
secondary membership group
a reference group with which people associate less consistently and more formally than a primary membership group, such as a club, professional group, or religious group
aspirational reference group
a group that someone would like to join
norm
a value or attitude deemed acceptable by a group
nonaspirational reference group
a group w/ which an individual does not want to associate
opinion leader
an individual who influences the opinions of others
socialization process
how cultural values and norms are passed down to children
personality
a way of organizing and grouping the consistencies of an individual's reactions to situations
self-concept
how consumers perceive themselves in terms of attitudes, perceptions, beliefs, and self-evaluations
ideal self-image
the way an individual would like to be perceived
real self-image
the way an individual actually perceives himself or herself
perception
the process by which pple select, organize, and interpret stimuli into a meaningful and coherent picture
selective exposure
the process whereby a consumer notices certain stimuli and ignores others
selective distortion
a process whereby a consumer changes or distorts information that conflicts with his or her feelings or beliefs
selective retention
a process whereby a consumer remembers only that information that supports his or her personal beliefs
motive
a driving force that causes a person to take action to satisfy specific needs
Maslow's hierarchy of needs
a method of classifying human needs and motivations into 5 categories (physiological, safety, social, esteem, self-actualization
learning
a process that creates changes in behavior, immediate or expected, through experience and practice
stimulus generalization
a form of learning that occurs when one response is extended to a second stimulus similar to the first
stimulus discrimination
a learned ability to differentiate among similar products
belief
an organized pattern of knowledge that an individual holds as true about his or her world
attitude
a learned tendency to respond consistently toward a given object
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