| A | B |
|---|
| Biz will outsource production to low-wage nations | to obtain a competitive advantage over rivals by selling goods and services at a lower price. |
| eliminatig trade barriers | requires each nation to compete with every other nation for markets. |
| with the yuan maintained at an artificially low level | Chinese goods and services can be priced more cheaply for sale in U.S. Markets. |
| Primary advantage to the Chinese economy fixing the rate of the yuan | Chinese exports could be sold more cheaply in U.S. Markets |
| Japan places a tariff on imports of rice produced in the US | to protect domestic rice growers from competition by artificially raising the price of imported rice |
| placing a tariff on an import | raises the price of the import |
| Importers must charge customers a price | sufficient to cover the cost of the import plus the cost of the tariff. |
| by raising the price of the import | a nation can lower the ability of the import to compete with similar goods produced by domestic producers. |
| Example of a nation illegally "dumping" under international trade agreement | China sells phone in France at less than it costs to produce them in China. |
| Dumping | a type of predatory pricing that is defined as exporting a product to another country at a price below the product's cost of production. |
| Primary function of the IMF | promoting economic stability by lending money to nations that are experiencing economic problems and pressing them to make reforms. |
| IMF | International Monetary Fund |
| Franchising | a relatively inexpensive way for a company to enter a foreign market. |
| Foreign franchising | company charges a fee for providing its brand ame, materials, and other support to a businessperson in another country responsible for day-to-day running |
| Four Ps of marketing | Product, placement, price and promotion |
| Penetration pricing strategy | involves setting the price of a product below that of competitors' products to capture market share. |
| Penetration pricing is most useful | when a company is attempting to introduce a new product into a market that already has several similar products. |
| Example of institutional advertising | a pharma company uses a radio spot to assure listeners of the company's commitment to hold down prices while fighting disease. |
| Institutional advertising | focuses on influencing consumer perceptions regarding a business or industry rather than a particular product. |
| Effective marketing requires | cost/benefit analysis |
| Costs | the resources needed to mount a marketing campaign |
| benefits | the number of people who purchase the product |
| Targeting marketing efforts | reduces the cost/benefit ratio by increasing the likelihood that each marketing dollar spent will lead to a sale. |
| relationship marketing | focuses on customer satisfaction and retention rather than point-of-sale transactions |
| analyzing purchasing choices of an individual over time | allows a business to increase customer satisfaction by providing differentiated, individualized serve to each customer. |
| broad target audience | general public, all women |
| narrow target audience | fishing enthusiasts, gourmet cooks |
| market research questionnaires | use questions that elicit close-end responses or open-end responses |
| close-end responses | yes/no responses, easily tabulated and analyzed. |
| open-end responses | require respondent to explain elaborate as part of response, must be interpreted qualitatively. |
| Maturity stage | competing products introduced and will begin to capture market share |
| Introduction stage | product has few competitors |
| Growth stage | product sales will increase, if popular |
| Pull strategy | uses advertising to create demand for a product on the part of consumers who will then "pull" the product through the distribution chain by requesting it. |
| Push strategy | calls for "pushing" the product thru the distribution chain by inducing channel members to carry the product and promote it to their customers. |
| Example of push marketing | Featuring a product on their shelves. |
| Internet significantly affects the way biz conduct market research by | facilitating a company's ability to collect information about a person's interests and buying habits without that person's knowledge. |
| Cookies | allow internet businesses to collect data about how individuals use their computers. |
| Market creators, such as online auction houses obtain their revenue from | transaction fees |
| Web-based business have the advantage in assessing | the cost-effectiveness of its advertising by having an increased ability to measure how much revenue is generated by ads |
| production of industrial goods | requires a high capital investment |
| general partnership | two or more owners of a business share the business's profits and losses, mgmt of responsibilities and liabilities |
| limited partnership | one or more general partners and any number of limited partners |
| C corportation | subject to double taxations, owners pay taxes on individual income and biz pays taxes on net income |
| Flow-through entities | partnerships and sole propietorships |
| S corporation | taxed in a similar manner to partnerships in that the S corporation is not taxed |
| First step in developing a strategic business plan | articulating the core beliefs, values and competencies of the business. |
| Sources of funding for entrepreneurs | commercial banks and venture capitalists |
| commercial banks | loan money that is repaid according to a strict timetable, with interest payments added onto the principal. |
| Venture capitalists | provide funds for a new business in return for equity in the business, often in the form of shares. |
| Funds provided by venture capitalists | are not repaid with interest, but receive a return on their investment from biz growth. |
| oral commuication | impermanent and cannot be easily reviewed by the listener |
| written communication | can be reread to obtain the correct meaning. |
| Bluetooth | a wireless protocol that uses radio to exchange information between devices. |
| Active listening | a structured way of listening and responding to others which focuses the listener's attention fully on the speaker rather than his or her own reaction |
| VoIP | Voice over Internet Protocol - refers to technology that allows voice transmission over the internet rather than phone. |
| Wiki technology | includes software that allows web pages to be created and edited by many individuals using a common web browser. |
| intranet | a private computer network that is used to securely share an organization's information or operational system with its employees. |
| phishing | the illegal practice of attempting to obtain information such as credit card number, pw or user names by masquerading as a trustworthy entity. |
| CNC | Computer numerical control - refers to the use of computer programs to control the operation of various machine tools. |
| router | device used to transfer data from one network to another |
| Open-source software | allow users to modify the applications source code. |
| MBA | designed to introduce the student to various areas of business |
| primary goal of market analysis | provide information to product and brand managers that will help guide the company's marketing efforts. |
