Management Exam 2

• business-to-business marketing


  marketing of products & services to companies, gov't or non-profit organizations for use in creation of goods & services
• organizational buyers


  manufacturers, wholesalers, retailers & gov't agencies that buy goods & services for their own use or for resale
• derived demand


  demand for industrial products & services that is driven by or derived from demand for consumer products & services
• organizational buying criteria


  objective attributes of supplier's products & capabilities of supplier itself
• organizational buying behavior


  decision-making process that organizations use to establish need for product & services & identify, evaluate & choose among alternative brands & suppliers
• supplier development


  deliberate effort by organizational buyers to build relationships that shape suppliers products, services, & capabilities to fit a buyer's needs & those of it's customers
• reciprocity


  industrial buying practice in which 2 organizations agree to purchase each other's products & services
• supply partnership


  exists when buyer & supplier adopt mutually beneficial objectives, policies & procedures for purpose of lowering cost or increasing value of products & services delivered to ultimate consumer
• buying center


  group of people in organization who participate in buying process & share common goals, risks & knowledge important to purchase decision
• buy classes


  3 types of organizational buying situations
• e-marketplaces


  online trading communities
• traditional auction


  would-be buyers are invited to bid in competition with each other over a product
• reverse auction


  buyer needs product & sellers bid against each other
• countertrade


  practice of using barter rather than money for making global sales
• GDP


  monetary value of all products & services produced in a country during 1 year
• balance of trade


  difference between monetary value of making exports & imports
• protectionism


  practice of shielding 1 or more industries within country's economy from foreign competition through the use of tariffs or quotas
• tariffs


  gov't taxes on products or services entering a country that primarily server to raise prices on imports
• quota


  restriction placed on amount of product allowed to enter or leave a country
• WTO (world trade organization)


  permanent institution that sets rules governing trade between its members
• global competition


  firms originate, produce & market products & services worldwide
• strategic alliances


  agreements among 2 or more independent firms to cooperate for the purpose of achieving common goals
• multidomestic marketing strategy


  involves multinational firms that have as many different product variations, brand names & advertisings programs as countries in which they do business
• global marketing strategy


  transnational firms that employ practice of standardizing marketing activities when there are cultural similarities & adapting them when cultures differ
• global brand


  brand marketed under same name in multiple countries with similar & centrally coordinated marketing programs
• global consumers


  consumer groups living in many countries or regions of the world who have similar needs or seek similar features & benefits from products or services
• cross-cultural analysis


  involves study of similarities & differences among consumers in 2 or more nations or societies
• values


  society's personally or or socially preferable modes of conduct or states of existence that tend to persist over time
• customs


  what is considered normal & expected about the way people do things in a specific country
• foreign corrupt practices act (1977)


  makes it a crime for U.S. corporations to bribe an official of a foreign gov't or political party to obtain or retain business in foreign country
• cultural symbols


  things that represent ideas & concepts
• back translation


  practice where translated word or phrase is retranslated into original language by different interpreter to catch errors
• consumer ethnocentrism


  tendency to believe that it is inappropriate, indeed immoral to purchase foreign-made products
• currency exchange rate


  price of 1 country's currency expressed in terms of another country's currency
• exporting


  global market-entry strategy in which company produces products in 1 country & sells them in another country
• joint venture


  global market-entry strategy in which foreign company & local firm invest together to create local business in order to share ownership, control & profits of new company
• direct investment


  global market-entry strategy that entails domestic firm actually investing in & owning a foreign subsidiary or division
• dumping


  firm sells product in foreign country below its domestic price or below its actual cost
• gray market


  situation where products are sold through unauthorized channels of distribution
• marketing research


  process of defining marketing problem & opportunity, systematically collecting & analyzing info & recommended actions