PRINCIPLES OF MARKETING NOTES Chapters 7-9

BUS 270 Principles of Marketing, Chapters 7-9 through Cengage

Producer Markets

Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in their operations

Reseller Markets

Intermediaries that buy finished goods and resell them for a profit

Government Markets

Federal, state, county, or local governments that buy goods and services to support their internal operations and provide products to their constituencies

Institutional Markets

Organizations with charitable, educational, community, or other nonbusiness goals

North American Industry Classification System (NAICS)

An industry classification system that generates comparable statistics among the United States, Canada, and Mexico

New-Task Purchase

An organization’s initial purchase of an item to be used to perform a new job or solve a new problem

Straight Rebuy Purchase

A routine purchase of the same products under approximately the same terms of sale by a business buyer

Modified Rebuy Purchase

A new-task purchase that is changed on subsequent orders or when the requirements of a straight rebuy purchase are modified

Business (organizational) Buying Behavior

The purchase behavior of producers, government units, institutions, and resellers

Buying Center

The people within an organization who make business purchase decisions

B2B E-Commerce Sites

Online marketplaces where buyers and sellers from around the world can exchange information, goods, services, ideas, and payments

International Marketing

Developing and performing marketing activities across national boundaries

Gross Domestic Product (GDP)

The market value of a nation’s total output of goods and services for a given period; an overall measure of economic standing

Import Tariff

A duty levied by a nation on goods bought outside its borders and brought into the country

Quota

A limit on the amount of goods an importing country will accept for certain product categories in a specific period of time

Embargo

A government’s suspension of trade in a particular product or with a given country

Self-Reference Criterion (SRC)

The unconscious reference to one’s own cultural values, experiences, and knowledge

Cultural Relativism

The concept that morality varies from one culture to another and that business practices are therefore differentially defined as right or wrong by particular cultures

United States–Mexico–Canada Agreement (USMCA)

An alliance that merges Canada, Mexico, and the United States into a single market

European Union (EU)

An alliance that promotes trade among its member countries in Europe

Southern Common Market (MERCOSUR)

An alliance that promotes the free circulation of goods, services, and production factors, and has a common external tariff and commercial policy among member nations in South America

Asia-Pacific Economic Cooperation (APEC)

An alliance that promotes open trade and economic and technical cooperation among member nations throughout the world

Association of Southeast Asian Nations (ASEAN)

An alliance that promotes trade and economic integration among member nations in Southeast Asia

World Trade Organization (WTO)

An entity that promotes free trade among member nations by eliminating trade barriers and educating individuals, companies, and governments about trade rules around the world

Importing

The purchase of products from a foreign source

Exporting

The sale of products to foreign markets

Trading Company

A company that links buyers and sellers in different countries

Licensing

An alternative to direct investment that requires a licensee to pay commissions or royalties on sales or supplies used in manufacturing

Franchising

 A form of licensing in which a franchiser grants a franchisee the right to market its product, using its name, logo, methods of operation, advertising, products, and other elements associated with the franchiser’s business, in return for a financial commitment and an agreement to conduct business in accordance with the franchiser’s standards

Contract Manufacturing

The practice of hiring a foreign firm to produce a designated volume of the domestic firm’s product or a component of it to specification; the final product carries the domestic firm’s name

Outsourcing

The practice of contracting noncore operations with an organization that specializes in that operation (tech support, HR, accounting)

Offshoring

The practice of moving a business process that was done domestically at the local factory to a foreign country, regardless of whether the production accomplished in the foreign country is performed by the local company (e.g., in a wholly owned subsidiary) or a third party (e.g., a subcontractor)

Offshore Outsourcing

The practice of contracting with an organization to perform some or all business functions in a country other than the country in which the product will be sold

Joint Venture

A partnership between a domestic firm and a foreign firm or government

Strategic Alliance

A partnership that is formed to create a competitive advantage on a worldwide basis

Multinational Enterprise

A firm that has operations or subsidiaries in many countries

Globalization

The development of marketing strategies that treat the entire world (or its major regions) as a single entity

Digital Media

Electronic media that function using digital codes; media available via computers, cellular phones, smartphones, and other digital devices that have been released in recent years

Digital Marketing

Using all digital media, including the internet and mobile and interactive channels, to develop communication and exchanges with customers

Electronic Marketing (e-marketing)

The strategic process of pricing, distributing, and promoting products, and discovering the desires of customers using digital media and digital marketing

Social Network

A website where users can create a profile and interact with other users, post information, and engage in other forms of web-based communication

Blogs

Web-based journals (short for “weblogs”) in which writers editorialize and interact with other internet users

Podcast

Audio or video file that can be downloaded from the internet with a subscription that automatically delivers new content to listening devices or personal computers

SMS Messages

Text messages of 160 characters or less

Multimedia Messages

Used to send video, audio, photos, and other media using mobile devices

Mobile Advertisements

 Visual advertisements that appear on mobile devices

Mobile Websites

Websites designed for mobile devices

Mobile Applications

A software program that runs on mobile devices and give users access to certain content