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Glossary Terms

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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A

Added Value: an additional benefit or the amount by which the value is increased at some stage of its production; enhanced product differentiation.

Analysis: the examination of complex information in order determine its essential features and their relations to forecast what has happened (or is about to happen), what it means, and what should be done about it.

Analyst: someone who creates views for analytic interpretation of data, performs calculations and distributes the resulting information in the form of reports.

Analytics: the process and techniques for the exploration and analysis of business data to discover and identify new and meaningful information and trends that allow for analysis to take place.

Applied Research: any research which is used to answer a specific question, determine why something failed or succeeded, solve a specific pragmatic problem, or to gain a better understanding.

Awareness: a measure of respondents’ knowledge of an object or an idea. There are two main measures of awareness: spontaneous (or unaided) and prompted (or aided) awareness.


B

Balance of Trade: the difference between a country's total imports and exports. If exports exceed imports, a favorable balance of trade exists; if not, a trade deficit is exists.

Balance Scorecard: a strategic planning and management system for performance measurement that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Benchmarking: assessing performance, usually of a company, but also of a product against acknowledged leaders in different fields of activity (e.g. production / marketing / finance etc.).

Beneficiary: the person in whose favor a letter of credit is issued or a draft is drawn.

Bill of Landing: a document that establishes the terms of a contract between a shipper and a transportation company under which freight is to be moved between specified points for a specified charge. Usually prepared by the shipper on forms issued by the carrier, it serves as a document of title, a contract of carriage, and a receipt for goods.

Bonded Warehouse: a warehouse authorized by customs authorities for storage of goods on which payment of duties is deferred until the goods are removed.

Business Intelligence: an environment in which business users receive data that is reliable, consistent, understandable, easily manipulated and timely. With this data, business users are able to conduct analyses that yield overall understanding of where the business has been, where it is now and where it will be in the near future. Business intelligence serves two main purposes. It monitors the financial and operational health of the organization.


C

Certificate of Origin: a document, required by certain foreign countries for tariff purposes, certifying the country of origin of specified goods.

Commercial Attaché: a commerce expert who is working at an embassy or legation representing the commercial interests of his or her country.

Commercial Invoice: an itemized list of goods shipped, usually included among an exporter's collection papers.

Commodity: a product that is consumed routinely and therefore bought often.

Communication Plan: a written plan describing the messages a company wishes to portray about itself or its offerings.

Community of interest: a network of people who are committed to the mutual exchange of ideas and Information. The focus tends to be on learning about areas of common interest, rather than on producing practical results.

Competition: from a business perspective, firms that market products similar to, or substitutable for, its products in the same target market.

Competitive Advantage: exploiting the unique blend of activities, assets, attributes, market conditions, and relationships that differentiates an organization from its competitors. These may include: access to natural resources, specific location, or skilled workforce.

Competitive Analysis: the strategic assessment of the strengths and weaknesses of the competitors products, research and development, production methods and costs, organizational designs, financial status, marketing strategies by which the company can then create both offensive and defensive strategies to operate in the market.

Competitive Intelligence: identifies competitive trends, provides early warning on threats and opportunities in the evolving competitive landscape and evaluates their impact as well as having an understanding and systematic analysis of the competitor's products/services, production methods, finances, strategies, and organizational design.

Competitive Strategy: how a company competes in a particular business (note: overall strategy for diversified firms is referred to as corporate strategy). Competitive strategy is concerned with how a company can gain a competitive advantage through a distinctive way of competing.

Cost Orientation: the point of view that increasing the efficiency of production is the primary means of increasing an organization’s profits. There is little consideration of customers’ needs and desires.

Customer Orientation: attempt to focus the company’s strategy strictly on the needs of the buyers in the target market.

Costumer Relationship Management: the idea of establishing relationships with customers on an individual basis, then using that information to treat different customers differently. Customer buying profiles and churn analysis are examples of decision support activities that can affect the success of customer relationships.

Cultural Intelligence: Cultural intelligence (CQ) is your capability to grow personally through continuous learning and good understanding of diverse cultural heritage, wisdom and values, and to deal effectively with people from different cultural background and understanding.

Customer Satisfaction: degree to which the customer’s expectations of a market offering and / or the actual performance of the company are met.

Customs: the authorities designated to collect duties levied by a country on imports and exports. The term also applies to the procedures involved in such collection.


D

Data: consist of unconnected facts, numbers, names, codes, symbols, dates, words, and other items of that nature that are out of context, and that only acquire meaning through association.

Database: a collection of interrelated data stored together without harmful or unnecessary redundancy and structured in such a manner as to serve one or more applications. The data are stored so that they are independent of programs that use the data.

Data Analysis & Presentation Tools: software that provides a logical view of data in a warehouse. Some create simple aliases for table and column names; others create data that identify the contents and location of data in the warehouse.

Data-Based Knowledge: Knowledge derived from data through the use of Business Intelligence Tools. Most of our knowledge is based on a combination of our experience, perception, and intuition. Business Intelligence give us a new kind of knowledge based on data. Data-based knowledge can have several advantages over experience/intuition-based knowledge:

  1. It can be more accurate because it is based on so many detailed facts.
  2. It can be more current because the data warehousing and business intelligence tools can so quickly analyze new data.
  3. It can be more comprehensive because so many different perspectives are available through the rapid recombination of elements from different dimensions and different levels of the data hierarchy.
  4. It can give new insights because there are complex patterns in the data that can be discovered by data mining that would never be detected by human analysis.
  5. It can be less subjective because conclusions are tied directly to the physical data.
Data Management: controlling, protecting, and facilitating access to data in order to provide information consumers with timely access to the data they need. The functions provided by a database management system.

Data Mining: the extraction of hidden predictive information from large databases. Data mining tools predict future trends and behaviors, allowing businesses to make proactive, knowledge-driven decisions.

Demographics: the characteristics of the human population in the form of data that are used widely in sociology, public policy, and marketing. They are essential figures that help a company prepare their services and products for particular markets.

Depression: stage of the business cycle during which there is extremely high unemployment, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy.

Devaluation: the official lowering of the value of one country's currency in terms of one or more foreign currencies.

Distributor: a foreign agent who sells for a supplier directly and maintains an inventory of the supplier's products.

Domestic Market: the “home” market for a company.


E

Early Adopters: customers who are willing to buy a new product quite soon after launch.

Early Majority: individuals who adopt a new product just prior to the average person; they are deliberate and cautious in trying new products.

Economies of Scale: savings derived from producing a large number of units. More specifically: Decline in per unit product costs as the absolute volume of production per period increases.

Economic Sanctions: domestic penalties applied by one country (or group of countries) on another for a variety of reasons. Economic sanctions include, but are not limited to, tariffs, trade barriers, import duties, and import or export quotas.

Elasticity of Demand: the relative responsiveness of changes in quantity demanded to changes in price.

Environmental Analysis: process of seeking information about events and relationships in a Company’s environment to assist marketers in identifying opportunities and threats in planning.

Event Marketing: designing or developing a 'live' themed activity, occasion, display, or exhibit (such as a sporting event, music festival, fair, or concert) to promote a product, cause, or organization.

Exchange Permit: a government permit sometimes required by the importer's government to enable the import firm to convert its own country's currency into foreign currency with which to pay a seller in another country.

Exchange Rate: the price of one currency in terms of another, that is, the number of units of one currency that may be exchanged for one unit of another currency.

Export broker: an individual or firm that brings together buyers and sellers for a fee but does not take part in actual sales transactions.

Export Licenses: a government document that permits the licensee to export designated goods to certain destinations.

Export Processing Zone: type of free trade zone (FTZ), set up generally in developing countries by their governments to promote industrial and commercial exports. In addition to providing the benefits of a FTZ, these zones offer other incentives such as exemptions from certain taxes and business regulations. Also called development economic zone or special economic zone.


F

Fixed Costs: a cost that remains constant, regardless of any change in a company's activity.

Forecast: estimate future trends by examining and analyzing available information.

Foreign Exchange: a process of settling accounts or debts between persons in different countries; also, foreign currency of current short-term credit instruments payable in such currency.

Foreign Standards and Certification Information: Member countries of the World Trade Organization (WTO) are required under the Agreement on Technical Barriers to Trade (TBT Agreement) to report to the WTO all proposed technical regulations that could affect trade with other Member countries.

Foreign/Free Trade Zone: An area where goods of foreign origin may be brought in for re-export or transhipment without the payment of customs duty.

Free Trade Agreements: is a type of trade bloc, a designated group of countries that have agreed to eliminate tariffs, quotas and preferences on most or all goods and services traded between them.


G

GATT: a multilateral agreement regulating trade among about 150 countries. According to its preamble, the purpose of the GATT is the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis."

General Export License: government authorization to export without specific documentary approval.

Geographics: any method of subdividing a list based on geographic or political subdivisions.

Globalization: development of marketing strategies as if the entire world (or regions of it) were a single entity, regional economies, societies, and cultures have become integrated through communication, transportation and trade; products are marketed the same way everywhere.


H


I

Implementation: stage in the marketing planning process in which the plan “becomes concrete” by defining specific tasks, fixing the concrete time horizon and allocating resources and budgets for achievement.

Import License: a governmental document which permits the importation of a product or material into a country where such licenses are necessary.

Inflation: condition in which price levels increase faster than incomes, causing a decline in purchasing power.

Intellectual Property Rights: the rights given to persons over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creation for a certain period of time.

Information: consists of data arranged in some sort of order (for instance, by classification or rational presentation) so that they acquire meaning or reveal associations between data items.

In-House Research: within, conducted within, or utilizing an organization's own staff or resources rather than external or nonstaff facilities:

Innovation: a new idea, method, or device. ISO Standards: the International Organization for Standardization (Organisation internationale de normalisation), widely known as ISO, is an international standard-setting body composed of representatives from various national standards organizations.


J


K

Key Success Factors: main factor(s) that are necessary condition(s) for success in a given market environment.

Knowledge Management: to create optimal flow of knowledge (based on information) within and throughout the organization.


L

Launch: introduction of a new product that usually includes a strategy for marketing and a big event including all stakeholders.

Lead-firm network: initiated by a large firm to ensure that its suppliers can meet the quality, quantity, and timetable of delivery required by that firm. The advantage is a more reliable source of supply. The suppliers benefit through gaining access to a guaranteed market and, usually, through improved management and production techniques.

Learning organization: an organization that places considerable emphasis on developing strategies and techniques for sharing information and creating new knowledge in order to gain a competitive advantage.

Letter of Credit (L/C): a document issued by a bank at buyer's request in favor of a seller, promising to pay an agreed amount of money upon receipt by the bank of certain documents within a specified time.

Licensing: the grant of technical assistance and service and/or the use of proprietary rights, such as a trademark or patent, in return for royalty payments.


M

Market: a group of people or organizations that share a need for a particular product, and have the willingness and ability to use it and pay for it.

Market Analysis: measuring and evaluating actual or potential sales of a product or service.

Market Demand: total volume of a specific product / service bought by a defined group of customers in a specific market area, in a specified time period.

Market Development: a process for developing business: new customers and markets, and new products to existing customers and markets.

Market Entry Barriers: a number of different factors that restrict the ability of new competitors to enter and begin operating in a given industry.

Market Intelligence: concerns the attitudes, opinions, behavior, and needs of individuals and organizations within the context of their economic, environmental, social, and everyday activities.

Market Leader: brand or product securing the greatest proportion of total sales within its field. May sometimes refer to the company marketing the product or service concerned.

Market Opportunity: an opportunity that arises when the right combination of circumstances occurs at the right time to enable an organization to take action toward generating sales from a target market.

Market Opportunity Analysis: using advanced analytical techniques, describes market segment opportunity and predicts future growth and if the company can be successful in that market.

Market Orientation: a business approach that centers its activities on solving the problems of, and satisfying the needs and wants of its customers.

Market Manager: with the assistance of a marketing or sales team, a marketing manager estimates demand for and identifies markets for the company's or organization's products and services. A marketing manager and his or her team also set prices with an eye toward maximizing profits, increasing market share and keeping customers happy.

Market Penetration: the number of individual’s prescribing, buying, using the product or service within a given market.

Market Planning Cycle: the five-step cycle that involves developing or revising marketing objectives relative to performance, assessing marketing opportunities and resources, formulating marketing strategy, developing the plan for implementation and control, and executing the marketing plan.

Market Potential: the estimated maximum total sales revenue of all suppliers of a product in a market during a certain period.

Market Research: (definition of the American Marketing Association) information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process.

Market Segmentation: the process of dividing a total market into groups of firms or customers with relatively similar characteristics and therefore similar needs, for the purpose of designing marketing and sales programs that more precisely meet the needs of firms for a selected segment.

Market Share: is that proportion (percent) of the total market that is using a particular organization’s product.

Marketing Channels: group of interrelated intermediaries who direct products to customers; also called channels of distribution.

Marketing Environment: environment that surrounds both the buyer and the seller; consists of political, legal, social, economic, and technological forces.

Marketing Mix: planned combination of the elements of marketing in a marketing plan which will typically include Product, Place (distribution), Price and Promotion (communication) with the aim of achieving the greatest effect at minimum cost.

Marketing Strategy: the approach a company takes to securing and retaining profitable relationships with its customers, generally involving segmentation, targeting and positioning choices as well as adoption of a suitable marketing and sales program.


N

New Product Development: process consisting of the following phases: idea generation, screening, business analysis, product development, test marketing, and commercialization.

Niche Strategy: strategy to serve market segments that are big enough to be profitable for the company but small enough to be of little interest for competing companies.


O


P

Penetration: the proportion (usually expressed as a percentage) of a population of interest that has accepted a product or an idea in some way.

PEST: Political, Economic, Social, Technological factors that are used as a scan of the external macro-environment in which the firm operates.

Perception: process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.

Perfect Competition: ideal competitive structure that would entail a large number of sellers, none of which could significantly influence price or supply.

Political Risk: is a type of risk faced by investors, corporations, and governments. It is a risk that can be understood and managed with reasoned foresight and investment.

Portfolio: the total range of products offered by the company also incorporates products in development.

Positioning: the act of creating an image of what a product can offer and to whom, so that it will occupy a distinct and sustainable competitive position in the mind of the target customer.

Pre-Marketing: any marketing activity taking place before the launch of a product/service.

Price Structure: details of different prices and discounts offered on different order sizes.

Primary Research: original, new marketing research by someone in-house, which involves collecting information for a specific purpose, and possibly commissioning a study tailored to filling the information gap. It also means using a variety of research techniques, determines the company’s and competitors’ marketplace position on a wide variety of characteristics such as satisfaction, brand image, pricing, ease of use etc. and associated implications for the company.

Product Life Cycle: a concept suggesting that a product goes through various stages in the course of its life: introduction, growth, maturity and decline. At each stage, a product’s marketing mix changes, as will its revenue and profit profile.

Product Line: group of closely related products that are considered a unit because of marketing, technical, or end-use considerations.

Product Mix: the full range of products and their variants that an organization makes available to customers.


Q

Qualitative Research: marketing research used to explore opinion and value judgments of individuals from which collective general conclusions may be drawn. Such research usually involves group discussions or in-depth interviews.

Quantitative Research: involves the collection of statistically large samples of data and usually some form of statistical analysis. Quantitative research is often used to substantiate the findings of qualitative research.

Quota: the total quantity of a product or commodity which may be imported into a country without restriction or the penalty of additional duties or taxes.

Quotation: an offer to sell goods at a stated price and under stated terms.


R

Recession: stage in the business cycle, during which unemployment rises and total buying power declines, stifling both consumers’ and business people’s propensity to spend.

Relationship Marketing: deliberate building of strong relations with (internal and external) customers with the aim of satisfying their needs and wants in order to keep them enthusiastic. In this way (internal and external) customer retention will create an ongoing market success.

RFP: Request for proposals, is an early stage in a procurement process, issuing an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service.

Risk Analysis: stage in the definition of a marketing plan where the internalvulnerability (weakness) and the external threats are identified.

R.O.I.: return on investment, the profit or loss resulting from an investment transaction, usually expressed as an annual percentage return.

Research & Development: (R&D) refers to systematic investigation or experimentation involving innovation or technical risk, the outcome of which is either new knowledge (with or without a specific practical application) or new or improved materials, products, devices, processes, or services.


S

Secondary Research: research which involves collecting information from existing sources, e.g. internal company records, sales audits, government or other official statistics. Secondary Research evaluates a wide variety of internally and externally available information sources, identifies the most beneficial, and obtains permissions for the company to use.

Segmentation: breakdown of a market into discrete, identifiable groups, each of which may have its own (similar) special needs or characteristics so that selective investment may be made to achieve competitive advantage.

Situation Analysis: analyzing the set of circumstances or conditions that exist in a market when marketing activities are planned, specifically looking at the customers, companies and competitors.

Strategic Alliance: a relationship between two or more parties to pursue a set of agreed upon goals or to meet a critical business need while remaining independent organizations.

Strategic Business Unit: is an enterprise or segment of an enterprise whose product line, market environment, sales force, competitors, and customers are sufficiently different from the remainder of the company’s activities that it requires its own unique marketing strategy.

Strategic Marketing Plan: an annual comprehensive review of markets and opportunities, then make long-term strategic decisions without the distractions of day-to-day marketing and sales activities. Daily decisions then fit into the company's overall strategic marketing goals.

Strategy: is the timely adoption of courses of action and the allocation of resources necessary for carrying out the basic long-term goals and objectives of an enterprise with the emphasis on achieving something different or unique. An organization's strategy may be represented visually by a strategy map; a powerful communication tool.

SWOT: an analysis of a company's internal factors, strengths and weaknesses, as well as the company's external factors for opportunities and threats.


T

Tactics: the detailed components of a marketing strategy contained within a marketing plan explaining in detail what steps are to be taken to meet the objectives set.

Target Market: a segment of the market, which has been selected as a focus for the company’s market offering or communications.

Tariff: a schedule or system of duties imposed by a government on goods imported or exported; the rate of duty imposed in a tariff.

Trade Show: event enabling manufacturers and wholesalers to exhibit products and services to potential buyers, therefore assisting purchase transactions.

Trade Barrier: government imposed restriction on the free international exchange of goods or services.


U


V

Value-Added: value that a company adds to the cost of its input as a result of its own activities thus arriving at its output price.

Value Assessment: identification of criteria by which the global value of a product is established relative to competitors and alternative interventions.

Value Chain Analysis: dividing the activities of a company into “value-adding” functions, comparing their contribution to competitors and thereby assessing the position of competitive advantage in the industry.

Venture capital: equity investment in an unlisted business offered free of collateral to an entrepreneurial enterprise having potential for high returns over the medium to long term (two to seven years).

Vision: a clearly expressed view of the future state the organization will aspire to attain, where the company wants to go.


W


X


Y


Z


Documents

World Bank Projects and Operations

Publis Date: April.01.2011
Last Update Date: April.01.2011
The World Bank carries out projects and provides a wide variety of analytical...
Read More

ILO, International Labour Organisation

Publis Date: April.04.2011
Last Update Date: April.04.2011
The ILO is the international organization responsible for drawing up and...
Read More

UNCTAD, UN Conference on Trade & Development

Publis Date: April.04.2011
Last Update Date: April.04.2011
Established in 1964, UNCTAD promotes the development-friendly integration of...
Read More
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