Global Marketing, Consumer Decision Making, STP, and Marketing Research Flashcards

Vocabulary practice flashcards generated from lecture materials covering Global Marketing, Consumer Decision Making, STP (Segmentation, Targeting, Positioning), and Marketing Research.

Global Marketing

Marketing that targets markets on a worldwide scale.

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.

Absolute Advantage

A condition achieved when a country can produce a product or service at a lower cost than any other country, or when it is the only country that can provide the product or service.

Principle of Comparative Advantage

The principle stating that each country should specialize in products or services it can produce most readily and cheaply, and trade those products with foreign countries that can do the same.

Free Trade

A policy of permitting individuals and businesses in a country to buy and sell in other countries without restrictions.

Protectionism

A national economic policy where a country protects domestic industries from foreign competitors by establishing artificial barriers such as tariffs and quotas.

Gross Domestic Product (GDP)

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

Multinational Corporation

A company heavily engaged in international trade beyond exporting and importing, moving through stages to operate foreign subsidiaries, entire business lines, or global internet platforms.

Global Marketing Standardization

The production and sale of uniform products sold the same way all over the world.

Multidomestic Strategy

A strategy in which multinational firms enable individual subsidiaries to compete independently in domestic markets.

Tariff

A tax levied on goods entering a country.

Quota

A limit placed on the amount of a specific product that can enter a country.

Boycott

The exclusion of all products from certain countries or firms.

Exchange Control

A law compelling a company earning foreign money to sell it to a control agency, such as a central bank.

Foreign Direct Investment (FDI)

Active ownership or business investment in a foreign company by establishing physical operations or acquiring assets in that country.

Risk vs. Return Spectrum in Global Entry

A continuum of market entry methods progressing from low risk/low return (Exporting) to Licensing, Contract Manufacturing, Joint Venture, and finally high risk/high return (Foreign Direct Investment).

Consumer Behavior

Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; includes factors that influence purchase decisions and product use.

Value

A personal assessment of net worth obtained from making a purchase.

Perceived Value

The value a consumer expects to obtain from a purchase.

Utilitarian Value

Value derived from a product or service that helps the consumer solve problems and accomplish tasks.

Hedonic Value

Value that acts as an end in itself rather than as a means to an end, providing an emotional or experiential benefit.

Want

Recognition of an unfulfilled need and a specific product that will satisfy it.

Evoked Set

A group of brands resulting from an information search from which a buyer will make a choice.

Nudge

A small intervention that can change a person's behavior without forbidding options or significantly altering economic incentives.

Cognitive Dissonance

Inner tension experienced after recognizing an inconsistency between purchase behavior and values or opinions.

Psychological Ownership

A psychological state in which consumers feel product ownership prior to buying, making them willing to pay more and more likely to recommend it.

Jilting Effect

The anticipation of receiving a highly desirable option only to have it become inaccessible.

Involvement

The amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior.

Showrooming

The practice of examining merchandise in a physical retail location without purchasing, and then shopping online for a better deal on the same item.

Loyalty Loop

A reconceptualized decision journey where interconnected digital capabilities compress or eliminate the consider and evaluate steps to lock customers directly into repurchasing.

Churning

The process of customers switching companies or brands due to heavy competition or dissatisfaction.

Culture

The set of values, norms, attitudes, and symbols that shape human behavior and the products of that behavior, handed down from one generation to the next.

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 people in a society considered nearly equal in status or community esteem, who regularly socialize among themselves and share behavioral norms.

Reference Groups Breakdown

The categorization of reference groups into Direct (Primary small informal, Secondary large formal) and Indirect (Aspirational groups to join, Nonaspirational groups to avoid).

Primary Membership Group

A direct reference group characterized by frequent, informal, face-to-face interaction, such as family, friends, and peers.

Opinion Leader

An individual who influences the opinions of others in a decision-making process.

Market

People or organizations with needs or wants and the ability and willingness to buy.

Four Market Characteristics

The four required elements that define a market: 1) People or Organizations, 2) Needs or Wants, 3) Ability to Buy, and 4) Willingness to Buy.

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Market Segmentation

The process of dividing a market into relatively similar, meaningful, and identifiable segments or groups.

Substantiality

A criterion for successful segmentation requiring that a segment be large enough to warrant developing and maintaining a special marketing mix.

Responsiveness in Segmentation

A criterion requiring that market segments respond differently to a customized marketing mix compared to other segments.

Household Life Cycle

A series of stages determined by a combination of age, marital status, and the presence or absence of children, shaping demographic purchasing patterns.

Behavioral Segmentation

The process of sorting and grouping customers based on the behaviors they exhibit, including product consumption types, interaction cadence, and usage habits.

80/20 Principle

A principle holding that $20\%$ of all customers generate $80\%$ of total demand (also known as the Pareto Principle).

Satisficer

A business buyer who places an order with the first familiar supplier that satisfies its product and delivery requirements.

Optimizer

A business buyer who considers numerous suppliers, solicits bids, and studies all proposals carefully before selecting one.

Undifferentiated Targeting Strategy

A marketing approach that views the market as one big entity with no individual segments and uses a single marketing mix.

Concentrated Targeting Strategy

A strategy used to select one specific market segment (niche) to focus all marketing efforts and specialized mixes.

Multi-Segment Targeting Strategy

A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.

Cannibalization

A situation that occurs when sales of a new product cut into sales of a firm's existing products.

Positioning

Developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general.

Marketing Research

The process of planning, collecting, and analyzing data relevant to a marketing decision.

Management Information System (MIS)

An organized system consisting of internal company records, marketing intelligence activities, and marketing research used to provide decision-making data.

Descriptive Analytics

A level of marketing research analytics focused on gathering and presenting factual statements to answer 'what happened?'.

Diagnostic Analytics

A level of marketing research analytics focused on explaining data and relationships to answer 'why did it happen?'.

Predictive Analytics

A level of marketing research analytics focused on forecasting future patterns to answer 'what will happen?'.

Prescriptive Analytics

A level of marketing research analytics focused on optimization and recommended actions to answer 'how can we make it happen?'.

Marketing Research Analytics Roles Matrix

The continuum of data analytics moving from hindsight to foresight (Descriptive, Diagnostic, Predictive, Prescriptive) mapped by increasing difficulty and value.

Internet of Things (IoT)

Everyday physical devices connected wirelessly to a network to improve functionality and transmit data continuously.

Secondary Data

Data previously collected for any purpose other than the specific research project at hand.

Primary Data

Information collected for the first time for the specific purpose of solving the problem under investigation.

Probability Sample

A research sample in which every element in the population has a known statistical likelihood of being selected.

Scanner-Based Research

A system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the items they buy.