Viva-Voce – Principles of Marketing Terms for Job Interviews | BBA & MBA Review of Basic Terms



Market: Markets refers to the set of all actual and potential buyers of a product or a service.

Marketing:  The process by which companies create value for customers and build strong

Customer relationships in order to capture value from customers in return.

Needs: Needs are the stage of felt deprivation.

Wants:  Wants are desires for specific satisfiers of the deeper needs shaped by culture and society.

Demands:  Demands are the wants for specific products that are backed by purchase ability and willingness.

Market offerings:  Market offerings refers to the combination of product, services, information or experiences offered to mathe rket to satisfy a need  or  want.

Marketing Myopia: Marketing myopia refers to the mistake of paying more attention to the specific products  than to the benefits and experiences produced by this.

4P: Product, Place ,Price, Pr omotion.

7P: Product,Place ,Price ,Promotion, People, Process, Physical Environment.

Consumer Market: Consumer market refers to all the individuals and households that buy or acquire goods and services for personal consumption.

Consumer Buyer Behavior: Consumer buyer behavior refers to the buying behavior of final consumers—individuals and households who buy goods and services for personal consumption.

Culture: Culture is the learned values, perceptions, wants, and behavior from family and other important institutions.

Lifestyle: Lifestyle is a person’s pattern of living as expressed in his or her psychographics.

Perception: Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes.

Business Buyer Behavior: Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to other.

Business buying  process: Business buying process is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brands.

Product: A Product is anythingthat can be offered in a market for attention, acquisition, use, or consumptionthat might satisfy a need or want.

Service:  An activity, benefit, or satisfactionoffered for sale that is essentially intangibleand does not result in the ownership of anything

Characteristics of service: 1.Intangibility; 2.Inseparability; 3.Perishability;  4.Heterogeneity.

Convenience product: Convenience products are consumer products and services that the customer usually buys frequently, immediately, and with a minimum comparison and buying effort. Ex-Newspapers, Candy, Fast food.

Unsought product:  Unsought products are consumer products that the consumer does not know about or knows about but does not normally think of buying. Ex-Life insurance, Funeral services, Blood donations.

Price: Price is the only element in the marketing mix that produces revenue; all other elements represent costs.

Retailing: Retailing includes all the activities in selling products or services directly to final consumers for their personal, non-business use.

Personal selling: Personal selling is the personal presentation by the firm.

Customer database: Customer database is an organized collection of comprehensive data about individual customers or prospects, including geographic, demographic, psychographic, and behavioral data.

Absolute advantage: One country enjoying total lower costs of production than another country (ies).

Adaptation: Goods or service adapted in either product, distribution or advertising form to take account of unique conditions in any one country(ies).

Advertising: Any form of marketing communication in the paid media.

Agent: A channel institution which represents one or more suppliers for a fee.

Aggressive exporter: An organisation which develops clear marketing strategies for what it intends to do in a foreign markets.

Anthropology: The discovery of beliefs, motives and values through the study of a society’s overt and covert behaviour.

Area organisation. A form of international organisational structure used by highly marketing oriented organisations with stable products.

Attitudes and values: A predisposition towards a person or object based on cultural mores and values which is a precursor of behaviour.

Balance of payments: A measure of all economic transactions between one country and all other countries.

Barter: The direct exchange of goods and services between two parties, often without cash considerations.

Bill of lading. The receipt given by the shipping company to the shipper for goods accepted for carriage by sea. (as opposed to an airway bill of lading for goods carried by air).

Bills of exchange: An unconditional order in writing, addressed by one person (drawer) to another (drawee), signed by the person giving it (drawer), requiring the person to whom it is addressed (drawee) to pay on demand, at a fixed or determinable future date, a sum certain in money to, or to the order of, a specific person (payee) or to bearer.

Broker: A channel institution which puts a specific buyer(s) and seller(s) in contact with one another in one or more commodity(ies) or service(s) with a view to achieving a sale or benefit.

Brussels nomenclature: An international convention aimed at grouping articles, mainly according to their material composition, into a simplified classification system for tariff administration.

Budget: An amount of money set aside to cover the total cost of a communication campaign or other marketing activity.

C.I.F:  A contract of sale “cost, insurance freight” of the documents of title, not the goods, whereby the buyer is under an obligation to pay against the shipping documents irrespective of the arrival of the goods.

Cluster analysis: A technique for grouping similarities or differences between a set of objects or persons.

Comparative advantage: One country enjoying a lower production ratio (input to outputs) than another country under total specialisation.

Comparative analysis: Comparing the same set of statistics within a category of one country with another for the purpose of estimating potential demand.

Competition: A product, organisation or individual, in either the same or another category which can be directly substituted one for the other in fulfilling the same needs or wants.

Competitive strategy: The adoption of a specific target market and marketing mix stance in the market place.

Cooperative: A collection of organisations or individuals, pooling their resources in order to gain the commercial or non-commercial advantage in buying, selling or processing goods and/or services.

Countertrade: An agreement by the customer to buy goods on condition that the seller buys some of the customer’s own products in return.

Culture: The sum total of learned behaviourial characteristics or traits which are manifest and shared by members of a particular society.

Currency swaps: A method to gain access to foreign capital at favourable rates comprising contracts to exchange cash flow relating to the debt obligations of the two counterparts to the agreement.

Decentralised plans: A planning system taking into account differences in product/market conditions.

Demand pattern analysis: The analysis of in-country industrial sector growth patterns.

Devaluation: The reduction in the value of one currency vis a vis other countries.

Diffusion theory: A classification for the adoption of innovation(s) through social phenomenon, characterised by a normal distribution.

Distribution channel: An institution through which goods or services are marketed giving time and place utilities to users.

Dumping: The selling of goods or services in a buying country at less than the production unit price in the selling country, or the difference between normal domestic price and the price at which the product leaves the exporting country.

Duty: The actual custom duty based on an imported good either on an ad valorem, or specification amount per unit or combination of these two.

Ethnocentrism: A home country orientation but with export of surplus production. Exchange rate. The ratio of exchange of one currency to another.

Export credit guarantee fund: A facility, provided by government treasury, to guarantee the development costs of exports or legal claims arising there from.

Export processing zone: A zone, designated within the country, enjoying tax privileges or other status, where goods and services can be brought into, reprocessed and re-exported.

Exporting: The marketing of surplus goods produced in one country into another country.

Expropriation: The annexation or seizure of national assets as an extreme form of political action.

F.A.S: A contract of sale “free along side” whereby the seller undertakes to place the goods alongside a ship ready for boarding and carry all charges up to that point.

F.O.B: A contract of sale “free on board” whereby the seller undertakes to place the goods on board a named ship at a named port and berth and carry all charges up to delivery over the ships rail.

Foreign exchange: Facilities’ business across national boundaries, usually expressed in foreign currency bought or sold on the foreign exchange market.

Forward rates: A mechanism whereby the risk of changes in exchange rates can be covered by obtaining a new rate quote for a future exchange of currencies.

Future Contact: A legally binding contract to deliver/take delivery on a specified date of a given quality and quantity of a commodity at an agreed price.

General Agreement on Tariffs and Trade (GATT): An institutional framework producing a set of rules and principles with the intention of liberalising trade between member countries.

Geocentrism: A world orientation with world market strategies.

Global environment: All semi or uncontrollable factors which a marketer has to account for in carrying out global operations.

Global evaluation: A four stage organisational development process evolving from the first stage; domestic focus to a fourth stage; global marketing strategy of extension, adaptation and creation of market opportunities.

Global marketing:  Marketing on a worldwide scale reconciling or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives.

Global products: Products designed to meet global market segments.

Gross domestic product (GDP): The value of all goods and services produced by a country’s domestic economy in one year.

Gross national product (GNP): The market value of all goods and services outputted by residents of a country in one year including income from aboard.

Hedging:  A mechanism to avoid the risk of a decline in the future market of a commodity, usually by entering into futures markets.

Hierarchy of needs:  The ordering of a person’s needs into a hierarchy of relative potency such that as lower order needs are fulfilled higher, unfulfilled order needs emerge, which require fulfillment.

High context culture: Minimum reliance on explicit verbal or written conversations, more on the “implied”.

Ideology: An individual’s organisation or country’s political belief.

Income elasticity measurements: A description of the relationship between the demand for goods and changes in income.

Income per capita: The market value of all goods and services outputted by a country divided by the total number of residents of that country.

Inflation: A condition where demand outstrips supply or costs escalate, affecting an upward change in prices.

Information system: A system for gathering, analysing and reporting data aimed at reducing uncertainty in business decision making.

Interactive plans: A planning system whereby headquarters sets a policy and framework and subsidiaries interpret these under local conditions.

International monetary fund: A fund, with world wide country membership, (united nations) which lends money to countries on a short term basis to assist them the balance of payments problems.

International product life cycle: A model which suggest that products go through a cycle whereby high income, mass consumption countries go through a cycle of exporting, loss of exports to final importers of products.

International products: Goods or services seen as having extended potential into other markets.

Joint ventures: An enterprise in which two or more investors share ownership and control over property rights and operations.

Letter of credit: A method of international payment whereby the buyer instructs his own country bank to open a credit with the seller’s own country bank specifying the documents which the seller has to deliver to the bank for him/her to receive payment.

Levy: A tax imposed by the government, to meet a specific objective.

Licensing: A method of foreign operation cooperation whereby an organisation in one country agrees to permit a firm in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor.

Local products: Goods or services seen only suitable in one single market.

Low context culture: High reliance on explicit verbal or written communications or other explicit format.

Market entry: The way in which an organisation enters foreign markets either by direct or indirect export or production in a foreign country.

Market holding price: The charging of a price at what the market can bear in order to hold market share.

Matrix organization: A complex form of organisational structure bringing together the competencies of geographic knowledge, product knowledge and know how, and functional competencies – financial, production and marketing – and a knowledge of the customer, industry and its needs.

Media scheduling: A timetable for the allocation of advertising messages in the media over a given time horizon.

Media: Any paid for communication channel including television, radio, posters etc..

Mercantilism: A nationalist doctrine of one nation prospering at the expense of another nation.

Message: An informative communication about a product or service placed in a communication channel.

Multinational products: Goods or services adapted to the perceived unique characteristics of national markets.

Multiple factor indices: A measure of potential demand indirectly using, as proxies, variables that either intuition or statistical analysis suggest can be closely correlated with the potential demand for the product under view.

Nationalism: The assertion of indigenous culture by an individual, organisation or country.

Non tariff barrier: Measures, public or private that cause intentionally traded goods or services to be allocated in such a way as to reduce potential real world income.

Passive exporter: An organisation which awaits orders or comes across them by choice.

Penetration price: The charging of a low price in order to gain volume sales conducted under conditions of little product uniqueness and elastic demand patterns.

Physical distribution: The act and functions of physically distributing goods and services including the elements of transport, warehousing and order processing.

Polycentrism: A host country orientation on a subsidiary basis.

Price ceiling:  The maximum price which can be charged bearing in mind competition and what the market can bear.

Price escalation: The difference between the domestic price and the target price in foreign markets due to the application of duties, dealer margins and/or other transaction costs.

Price floor: The minimum price which can be charged bounded by product cost.

Primary data: Unpublished data from individuals or organisations.

Product organization: A form of international organisational structure whereby executives in functional areas are given global responsibility.

Product strategy: A set of decisions regarding alternatives to the target market and the marketing mix given a set of market conditions.

Promotion: The offer of an inducement to purchase, over and above the intrinsic value or price of a good service.

Purchasing power parity: The rate at which one unit of currency will purchase the same amount of goods and services as it bought in an equilibrium period, despite differential rates of inflation.

Quota: A specific imported amount imposed by one country on another, when once filled cannot be exceeded within a given time. When a quota is in force the price mechanism is not allowed to operate.

Regiocentrism: A regional market orientation with world market strategies.

Regression analysis:  The selection of an independent variable which accounts for the most variance in a dependent variable.

Retailer: A channel institution which acts as an intermediary between other channel institutions and the end user and who usually breaks bulk, charging a margin for its services.

Revaluation: The increase in the value of one currency vis a vis other currencies.

Search: The collection of relevant information by deliberate searching either formally or informally.

Secondary data: Published accessible data from a variety of sources.

Self reference criterion: Perceptual distortion brought about by an individual’s own cultural experience.

Skimming price: The charging of a high price in order to gain maximum revenue conducted under conditions of product uniqueness and inelastic demand patterns.

Sourcing: A decision to have certain components in the value chain manufactured out of the country. Often called the “make of buy” decision.

Standardisation: Same goods or services marketed in either product, distribution or advertising form, unchanged in any country.

Standardised plans: A uniform planning system applied globally, based on the economics of scale and consumer uniformity.

Strategic business unit: A self contained grouping of organisations, products or technologies which serve an identified market and competes with identified competitors.

Surveillance: The collection of relevant information which crosses an individual’s scanning attention field.

Tariff: An instrument of terms of access normally the imposition of a single or multiple excise rate on a imported good.

Terms of access: The conditions imposed by one country which apply to the importation of goods from another country.

The World Bank. Known also as the International Bank for Reconstruction and Development (IBRD): A bank, with world wide country membership, (United nations) which provides long term capital to and economic development.

Transfer pricing: The price at which goods or services are transferred between one country and another within the same organisation.

Wholesaler: A channel institution which purchases and sells in bulk from either original suppliers and/or other channel intermediaries, charging a margin for its services.

Contributor: Farzana Trisha

From Mawlana Bhashani Science & Technology University

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