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164 Cards in this Set
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Marketing
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"the activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders and society at large"
"facilitates exchange to satisfy needs and wants" |
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Utility
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the element of satisfaction garnered by meeting needs/wants
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CRM
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customer relationship management
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the four P's of marketing
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Product
Price Promotion Place of Distribution |
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To serve both buyers and sellers, marketing seeks... (2)
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1) to discover the needs and wants of prospective customers
2) satisfy those needs and wants |
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Exchange
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the trade of things of value between buyer and seller so that each is better off after the trade
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The marketing department is responsible for facilitating relationships, partnerships and alliances with the organization's...(4)
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1) customers
2) shareholders 3) suppliers 4) other organizations |
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What are the five realms of environmental forces that shape an organization's marketing activities?
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1) social
2) economic 3) technological 4) competitive 5) regulatory |
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What is the first objective in marketing?
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discovering the needs of prospective customers
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Approximately what percent of the more than 33,000 new consumable products (food, beauty, etc.) introduced into the US annually don't succeed in the long run?
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94%
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Showstoppers
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factors of a product that may doom it
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Need
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a need occurs when a person feels deprive of basic necessities such as food, clothing, and shelter (i.e. need for food vs. want for McDonald's)
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Want
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a want is a need that is chaped by a person's knowledge, culture and personality (i.e. want for McDonald's vs. need for food)
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Market
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people with both the desire and the ability to buy a specific offering (all markets ultimately are people)
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What constitutes an ability to buy? (3)
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1. authority
2. time 3. money |
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Target Market
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one or more specific groups of potential consumers toward which an organization directs its marketing program
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Product
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a good, service, or idea to satisfy the consumer's needs
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Price
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what is exchanged for the product
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Promotion
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a means of communication between the seller and buyer
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Place (of Distribution)
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a means of getting the product to the consumer
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How can the four P's be classified?
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as controllable factors--they are under the control of the organization producing the product
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Marketing Mix
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the controllable factors (product, price, promotion, and place) that the marketing manager can use to solve a marketing problem
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Environmental Forces
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the uncontrollable social, economic, technological, competitive, and regulatory forces that affect the results of a marketing decision
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"Customer Value"
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the unique combination of benefits received by targeted buyers that includes quality, convenience, on-time delivery, and both before-sale and after-sale service at a specific price
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Relationship Marketing
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linking the organization to its individual customers, employees, suppliers, and other partners for their mutual long-term benefit
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Marketing Program
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a plan that integrates the marketing mix to provide a good, service, or idea to prospective buyers
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Four distinct stages of manufacturing firms
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1. Production Era (early US years-1920)
2. Sales Era (1920s-1960s) 3. Marketing Concept Era 4. Consumer Relationship Era (today) |
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Production Era
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Goods were scarce and buyers were willing to accept virtually any goods that were available and make do with them
(early US years - 1920) |
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Sales Era
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manufacturers found they could produce more goods than buyers could consume. Competition grew, and firms hired more salespeople to find new buyers
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Marketing Concept
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the idea that an organization should strive to satisfy the needs of consumers while also trying to achieve the organization's goals
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Market Orientation
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Focusing organizational efforts to collect and use information about customer's needs to create customer value
Focus efforts on: 1) continuously collecting information about customers' needs 2) sharing this information across departments 3) using the information to create customer value *hearthstone of the Customer Relationship Era (today) |
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Marketing Concept Era
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when companies used the marketing concept (satisfying consumer needs and organizational goals)
This era introduced marketing at the beginning rather than the end of the production cycle and integrated marketing into each phase of the business |
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CRM (Def)
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customer relationship management:
the process of identifying prospective buyers, understanding them intimately, and developing favorable long-term perceptions of the organization and its offerings so that buyers will choose them in the marketplace |
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Customer Experience
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the internal response that customers have to all aspects of an organization and its offerings, including both the direct and indirect contacts of the customer with the company. (direct may include the customer's contacts with the seller through buying using and obtaining service. indirect most often involves unplanned "touches" with the company through word-of-mouth comments from other customers, reviewers, and news reports)
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Societal Marketing Concept
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the view that organizations should satisfy the needs of consumers in a way that also provides for society's well being
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Ultimate consumers
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the people who use the goods and services purchased for a household
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Organizational buyers
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those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale
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Profit
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the money left after a business firm's total expenses are subtracted from its total revenues and is the reward for the risk it undertakes in marketing its offerings
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Business Firm
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a privately owned organization such as Google that serves its customers to earn a profit so that it can survive
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Organization
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a legal entity that consists of people who share a common mission. This motivates them to develop offerings (products, services, or ideas) that create value for both the organization and its customers by satisfying their needs and wants
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Nonprofits Organization
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a nongovernmental organization that serves its customers but does not have profit as an organizational goal (focus instead on operational efficiency or client satisfaction for example)
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Strategy
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an organization's long term course of action that delivers a unique customer experience while achieving its goals
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Corporate Level
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where top management directs overall strategy for the entire organization. "Top management" usually means the board of directors and senior management officers with a variety of skills and experiences.
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SBU
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Strategic Business Unit:
a subsidiary, division, or unit of an organization that markets a set of related offerings to a clearly defined group of customers |
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Functional Level
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groups of specialists create value for the organization
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What are the three levels of today's organizations?
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1. Corporate Level
2. Strategic Business Unit Level 3. Functional Level |
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Core Values
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the fundamental, passionate and enduring principles that guide an organization's conduct over time
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Mission
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a statement of an organization's function in society that often identifies its customers, markets, products, and technologies (also "vision," "mission statement")
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Organizational Culture
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the set of values, ideas, attitudes, and behavioral norms that is learned and shared among the members of an organization
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Business
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the underlying industry or market sector of an organization's offerings
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Business model
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the strategies an organization develops to provide value to the customers it serves (often triggered by technological change)
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Goals/Objectives
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targets of performance to be achieved, often by a specific time
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Market Share
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the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry, including the firm itself
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Marketing Dashboard
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the visual computer display of essential marketing information
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Marketing Metric
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a measure of the value or trend of a marketing activity or resule
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Marketing Plan
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a raod map for the marketing activities of an organization for a specified future time period
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Competencies
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the special capabilities (skills, technologies, and resources) that distinguish a firm from other organizations and provide customer value
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Competitive Advantage
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a unique strength relative to a competitors that provides superiors returns, often based on quality, time, cost, or innovation
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Business Portfolio Analysis
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a technique that managers use to quantify performance measures and growth targets of their firms' strategic business units
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Cash Cows
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SBU's that generate large amount of cash, far more than they can invest profitably in themselves. They have dominant shares of slow-growth markets and provide cash to cover the organization's overhead and to invest in other SBU's
(Low Industry Growth) x (High Relative Market Share) |
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Stars
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SBU's with a high share of high-growth markets that may need extra cash to finance their own rapid future growth. When their growth slows, they are likely to be cash cows
(High Industry Growth) x (High Relative Market Share) |
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Question Marks
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SBU's with a low share of high-growth markets. They require large injections of cash just to maintain their market share, much less increase it. The name implies management's dilemma for these SBU's: choosing the right ones to invest in and phasing out the rest.
(High Industry Growth) x (Low Relative Market Share) |
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Dogs
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SBU's with low shares of slow-growth markets. Although they may generate enough cash to sustain themselves, they do not hold the promise of ever becoming real winners for the organization. Dropping SBU's that are dogs may be required, except when relationships with other SBU's, competitive considerations or potential strategic alliances exist
(Low Industry Growth) x (Low Relative Market Share) |
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Golden Retrievers
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Profitable dogs that provide money that can be used to help stars and problem products
(i.e. Pepsi) |
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Diversification Analysis
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a technique a firm uses to search for growth opportunities from among current and new products and markets
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Market Penetration
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a marketing strategy to increase the sales of current products in current markets. There is no change in either the basic product line or the markets served. Increased sales are generated by selling at higher volume or higher price
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Market Development
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a marketing strategy to sell current products to new markets
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Product Development
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a marketing strategy of selling new products to current markets
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Diversification
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a marketing strategy of developing new products and selling them in new markets
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SWOT Analysis
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an acronym describing an organization's appraisal of its internal strengths and weaknesses and its external opportunities and threats
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Strategic Marketing Process
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an approach whereby an organization allocates its marketing mix resources to reach its target markets
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Situation Analysis
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taking stock of where a firm or product has been recently, where it is now, and where it is headed
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what are the four areas that form the foundation upon which a firm builds its marketing program (used in SWOT analysis)
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1. Identify trends in the organization's industry
2. Analyze the organization's competitors 3. ASsess the organization itself 4. Research the organization's present and prospective customers |
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What are the four actions that may be undertaken after a SWOT analysis?
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1. Build on a strength
2. Correct a weakness 3. Exploit an opportunity 4. Avoid a disaster-laden threat |
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Marketing Segmentation
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the sorting of potential buyers into groups that have common needs and will respond similarly to a marketing action
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Points of Difference
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those characteristics of a product that make it superior to competitive substitutes
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What are the four components of the implementation phase?
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1. Obtaining resources
2. Designing the marketing organization 3. developing planning schedules 4. executing the marketing program designed in the planning phase |
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Marketing Strategy
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the means by which a marketing goal is to be achieved
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Marketing tactics
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detailed day-to-day operational decisions essential to the overall success of marketing strategies
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In the evaluation phase, what are the two responsibilities of the manager?
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1. to compare the results of the marketing program with the goals in the written plans to identify deviations
2. to act on these deviations, correcting negative deviations and exploiting positive ones |
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Planning Gap
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the difference between the projection of the path to reach a new goal and the project of the path of the results of a plan already in place
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Environmental Scanning
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the process of acquiring information on events outside the organization to identify and interpret potential trends
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Social forces
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the demographic characteristics of the population and its values
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demographics
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description of a population according to characteristics such as age, gender, ethnicity, income, and occupation
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Generally, the US population is becoming...
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larger, older and more diverse
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Baby Boomers
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the generation of children born between 1946 and 1964
interest in health, wellness, and appearance |
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Generation X
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members of the US population born between 1965 and 1976
self reliant, supportive of racial and ethnic diversity, and better educated than any previous generation. Not prone to extravagance; they are cautious, pragmatic and traditional |
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Generation Y
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Americans born between 1977 and 1994
influence on music, sports, computers, video games, and cell phones. strong -willed, passionate about the environment, and optimistic. attracted to purposeful work. |
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Millennials
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Americans born since 1994
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Metropolitan statistical area
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an area that has at leaste one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration
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Micropolitan statistical area
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an area that has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration
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Multicultural Marketing
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marketing programs that reflect unique aspects of different races
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Culture
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the set of values, ideas, and attitudes that is learned and shared among the members of a group
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Economy
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pertains to the income and resources that affect the cost of running a business or household
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Gross Income
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the total amount of money made in one year by a person, household, or family unit
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Disposable Income
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the moeny a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
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Discretionary Income
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the money that remains after paying for taxes and necessities. Often used for luxury items.
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Marketspace
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an information- and communication-based electronic exchange environment occupied by digitized offerings
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Intranet
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an Internet-based network used within the boundaries of an organization
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Extranet
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use Internet-based technologies to permit communication between a company and its suppliers, distributors, and other partners
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Competition
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alternative firms that could provide a product to satisfy a specific market's needs
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Pure Competitions
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when there are many sellers and they each have a similar product (i.e. wheat)
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Monopolisitc Competition
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when many sellers compete with substitutable products within a price range (i.e. coffee--if it's too expensive, people will switch to tea)
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Oligopoly
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a common industry structure in which a few companies control the majority of industry sales (i.e. wireless phones)
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Pure Monopoly
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When only one firm sells the product
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What are the four basic forms of competition, ranging from purest to least pure competition?
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1) Pure Competitions
2) Monopolistic Competition 3) Oligopoly 4) Pure Monopoly |
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Regulation
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restrictions that state and federal laws place on businesses
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What does the Sherman Antitrust Act of 1890 forbid?
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1) contracts, combinations, or conspiracies in restraint of trade
2) actual monopolies or attempts to monopolize any part of trade or commerce |
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What does the Clayton Act of 1914 forbid?
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Certain actions that are likely to lessen competition, although no actual harm has yet occurred. (made to supplement the Sherman Antitrust Act)
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What is made unlawful by the Robinson-Patman Act of 1936
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it was made unlawful to discriminate by charging different prices to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly
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Consumerism
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a movement started to increase the influence, power and rights of consumers in dealing with institutions. a grassroots movement started in the 1960s.
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What are the two focuses of regulation in regards to pricing?
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Price fixing and price discounting
price fixing has been determined illegal by the courts quantity price discounts are acceptable; promotional allowances or services may be given to buyers on an equal basis proportion to volume purchased; a firm can meet a competitor's price "in good faith" |
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What are the four regulatory concerns with regards to distribution?
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1. Exclusive Dealing
2. Requirement Contracts 3. Exclusive territorial distributorship 4. Tying arrangement |
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Exclusive dealing
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an arragnement a manufacturer makes with a reseller to handle only its products and not those of competitors. This practice is illegal under the Clayton Act only when it substantially lessens competition.
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Requirement contracts
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require a buyer to purchase all or part of its needs for a product from one seller for a time period. These contracts are not always illegal, but depend on the court's interpretation of their impact on distribution
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Exclusive territorial distributorships
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when a manufacturer grants a distributor the sole rights to sell a product in a specific geographical area. The courts have found few violations with these
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Tying Arrangement
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whereby a seller requires the purchaser of one product to also buy another item in the line. These contracts may be illegal when the seller has such economic power in the tying product that the seller can restrain trade in the tied product
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The FTC has power to... (2)
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1. issue cease and desist orders
2. order corrective advertising |
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Self-Regulation
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an alternative to government control, whereby an industry attempts to police itself
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Ethics
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the moral principles and values that govern the actions and decisions of an individual or a group
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Laws
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society's standards and values that are enforceable in the courts
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Business cultures
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the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings
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Caveat emptor
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"let the buyer beware"
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Consumer Bill of Rights (4 rights)
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(JFK, 1962) Codified the ethics of exchange between buyers and sellers, including rights to safety, to be informed, to choose, and to be heard.
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Economic Espionage
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the clandestine collection of trade secrets or proprietary information about a company's competitors (illegal and unethical); most prevalent in high-technology industries
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Code of Ethics
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a formal statement of ethical principles and rules of conduct
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Moral idealism
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a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome; this philosophy exists in the Consumer Bill of Rights.
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Utilitarianism
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a personal moral philosophy that focuses on the "greatest good for the greatest number"
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Social Responsibility
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the idea that organizations are part of a larger society and are accountable to that society for their actions
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What are the three concepts of social responsibility?
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1) profit responsibility
2) stakeholder responsibility 3) societal responsibility |
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Profit Responsibility
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holds that companies have a simple duty: to maximize profits for their owners or stockholders
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Stakeholder Responsibility
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focuses on the obligations an organization has to those who can affect achievement of its objectives, including consumers, employees, suppliers, and distributors.
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Societal Responsibility
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refers to obligations that organizations have to both the preservation of the ecological environment as well as to the general public.
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Triple Bottom Line
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a recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth
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Green Marketing
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marketing efforts to produce, promote, and reclaim environmentally sensitive products
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Cause Marketing
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tying the charitable contributions of a firm directly to sales produced through the promotion of one of its products (i.e. $1 of every purchase goes to breast cancer research)
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Social audit
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a systematic assessment of a firm's objectives, strategies, and performance in the domain of social responsibility
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What are the five steps of a social audit?
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1. Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors
2. Identification of social responsibility causes or programs consistent with the company's mission 3.Determination of organizational objectives and priorities for programs and activities it will undertake. 4. Specification of the type and amount of resources necessary to achieve social responsibility objectives 5. Evaluation of programs and activities undertaken and assessment of future involvement also: 1. recognize expectations 2. identify causes/programs 3. determine activities to do 4. plan activities 5. evaluate |
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Sustainable Development
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conducting business in a way that protects the natural environment while making economic progress
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Greenwashing
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the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice
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Consumer Behavior
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the actions a person takes in purchasing and using products and services
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Purchase Decision Process
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the stages a buyer passes through in making choices about which products or services to buy
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What are the five stages of the purchase decision process
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1) problem recognition
2) information search 3) alternative evaluation 4) purchase decision 5) post-purchase behavior |
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Problem Recognition
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the initial step in the purchase decision; perceiving a difference between a person's ideal and actual situations big enough to trigger a decision
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Internal Search
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scanning your memory for previous experiences with products or brands
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Consideration Set
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the group of brands that a consumer would consider acceptable from among all the brands of which he or she is aware in the product class
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What are the five situational influences that have an impact on the purchase decision process
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1) the purchase task
2) social surroundings 3) physical surroundings 4) temporal effects 5) antecedent states |
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What are the five stages of Maslow's hierarchy from broadest to most narrow
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1. Physiological needs (food, water, shelter, oxygen)
2. Safety needs (freedom from harm, financial security) 3. Social needs (friendship, belonging, love) 4. Personal needs (status, respect, prestige; self esteem) 5. Self-actualization needs (self-fulfillment; morality; creativity; spontaneity) ***higher level needs demand support of lower-level needs |
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Attitude
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a tendency to respond to something in a consistently favorable or unfavorable way
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Beliefs
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a consumer's perceptions of how a product or brand performs
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Derived Demand
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the demand for industrial products and services is driven by demand for consumer products and services
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Buying Center
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the group of people in an organization who participates in the buying process
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Buy Classes
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three types of organizational buying situations: new buy, straight rebuy or modified rebuy
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Protectionism
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the practice of shielding one or more industries within a country's economy from foreign competition through the use of tariffs or quotas
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tariff
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a government tax on goods or services entering a country, primarily serving to raise prices on imports
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quota
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a restriction placed on the amount of a product allowed to enter or leave a country
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Global Marketing Strategy
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the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ
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Global Brand
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a brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs
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Licensing
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a company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or fee
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Direct Investment
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when a domestic firm actually invests in and owns a foreign subsidiary or division
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Dumping
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when a firm sells a product in a foreign country below its domestic price or below its actual cost
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Gray Market
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a situation in which products are sold through unauthorized channels of distribution
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Secondary Data
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facts and figures that have already been recorded before the project at hand
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Primary Data
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facts and figures that are newly collected for a project
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