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marketing exam 1 key terms

Chapter 4
Target Market
a group of people or organizations for which an organization
designs, implements, and maintains a marketing mix intended
to meet the need of that group, resulting in mutually satisfying
When a company implements strategies that attempt to shape
the external environment within which it operates
Component Lifestyle
the practice of choosing goods and services that meet one’s
diverse needs and interests rather than conforming to a single,
traditional lifestyle
the study of people’s vital statistics, such as age, race and
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
A measure of the decrease in the value of money, expressed as
the percentage reduction in value since the previous year
A period of economic activity characterized by the negative
growth, which reduces demand of goods and services
Basic Research
Pure research that aims to confirm an existing theory or to
learn more about a concept of phenomenon
Applied Research
Research that attempts to develop new or improved products
Consumer Product
Safety Commission
Federal agency established to protect the health and safety of
consumers in and around their homes
Food and Drug
Administration (FDA)
A federal agency charged with enforcing regulations against
selling and disturbing 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
Chapter 5
Global Marketing
Marketing that targets markets throughout the world
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
Gross Domestic
the total market value of all final goods and services produced
for a given time period
Sending U.S. jobs abroad
Returning production jobs to the United States
A company that is heavily engaged in international trade,
beyond exporting and importing
Capital Intensive
Using more capital than labor in the production process
Global Marketing
Production of the uniform products that can be sold the same
way all over the world
When multinational firms enable individual subsidiaries to
compete independently in domestic markets
The largest Latin America trade agreement, includes Argentina,
Bolivia, Brazil, Chile, Columbia, Ecuador, Paraguay, Peru,
Uruguay, and Venezuela
Uruguay Round
World Trade
Organization (WTO)
A trade agreement to dramatically lower trade barriers
worldwide; created the World Trade Organization.
A trade organization that replaced the old General Agreement
on Tariffs and Trade (GATT)
General Agreement on A trade agreement that contained loopholes enabling
countries to avoid trade-barrier reduction agreements
Tariffs and Trade
North American Free
Trade Agreement
Dominican RepublicCentral America Free
Trade Agreement
European Union (EU)
World Bank
An agreement between Canada, the United States, and Mexico
that created the world’s then-largest free trade zone
A trade agreement instituted in 2005 that includes Costa Rica,
the Dominican Republic, El Salvador, Guatemala, Honduras,
Nicaragua, and the United States.
A free trade zone encompassing twenty-eight European
An international bank that offers low-interest loans, advice,
and information to developing nations.
Monetary Fund
An international organization that acts as a leader of last
resort, providing loans to troubled nations, and also works to
promote trade through financial cooperation.
Group of Twenty (G20)
A forum for international economic development that
promotes discussion between industrial and emerging-market
countries on key issues related to global economic stability.
Selling domestically produced products to buyers in other
Buyer for Export
An intermediary in the global marker that assumes all
ownership risk and sells globally for it own account.
Export Broker
An intermediary who plays the traditional broker's role by
brining 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.
The legal process whereby a licensor allows another firm to
use its manufacturing process, trademarks, patents, trade
secrets, or other proprietary knowledge.
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
Active ownership of a foreign company or of overseas
manufacturing or marketing facilities.
Exchange Rate
The price of one country's currency in terms of another
country's currency.
Floating Exchange
A system in which prices of different currencies move up and
down based on the demand for and the supply of each
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.
A form of trade in which all or part of the payment for goods
or services is in the form of other goods and services.