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 exchanges Environmental Management 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 Demography the study of people’s vital statistics, such as age, race and ethnicity Millennials 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 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 (CPSC) 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 commerce 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 Product(GDP) the total market value of all final goods and services produced for a given time period Outsourcing Inshoring Sending U.S. jobs abroad Returning production jobs to the United States Multinational Corporation 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 Standardization Production of the uniform products that can be sold the same way all over the world Multidomestic Strategy Mercosur 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 (NAFTA) Dominican RepublicCentral America Free Trade Agreement (CAFTA-DR) 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 countries An international bank that offers low-interest loans, advice, and information to developing nations. International Monetary Fund (IMF) 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. Exporting Selling domestically produced products to buyers in other countries. 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. Licensing Contract Manufacturing 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 Investment 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 Rates Dumping Countertrade A system in which prices of different currencies move up and down based on the demand for and the supply of each currency. 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.