Early developed country (EDC) Largely primary industry based, but with developing secondary (manufacturing) industrial sector. Low but growing GDP, developing infrastructure.

Econometrics is the study of economic variables and their interrelationships using computer models.

Economic community A group of nations organized to work toward common goals in the regulation of international trade. (Philip Kotler)

Economic convergence is a process involving a number of different economies at different stages of development aiming to come together into a union with common legislation, monetary base and policies.

Best example of economic convergence European Monetary Union. Having introduced the common external tariff and single European market member countries are currently moving towards monetary union and a common currency, the Euro in 2002.

Implications of economic convergence: 1) attraction for business, 2) greater economies and competitiveness, 3) considerable savings of international businesses, 4) marketer may suffer the consequences of long-term recessions, 5) rise of unemployment.

Economic development (classification):
1. Lesser Developed Country relies heavily on primary industries (mining, agriculture, forestry, fishing) with low GDP per capita, and poorly developed infrastructure.
2. Early Developed Country - largely primary industry based, but with developing secondary industrial sector. Low but growing GDP, developing infrastructure.
3. Semi-Developed Country - Significant secondary sector still growing. Rising affluence and education with the emergence of a 'middle class'. Developed infrastructure. 4. Fully Developed Country - Primary sector accounts for little of the economy. Secondary sector still dominates, but major growth in service sector. Sophisticated infrastructure.
5. Former Eastern Block Country may be any of above, but the 'command economy' under communism has left legacy that defies straightforward classification.

Differences between countries are as following : 1. Channel available; 2. Commitment; 3. Contractual agreements; 4. Concentration on the target market; 5. Consumption (demand); 6. Country itself; 7. Capacity to pay; 8. Competition; 9. Communication (media); 10. Culture; 11. Currency.

Measuring levels of economic development : (i) GDP per head, (ii) Source of GDP (primary, secondary or service based economy), (iii) Living standards (iv) Education levels, (v) Energy availability and usage.

Economic dynamism is associated with high energy driving forces producing rapid growth and development and operating in an environment with few frictions.

Examples of economic dynamism: 1) Singapore and 2) Dynamism.

Economic dynamism involves: 1) Emphasis on education and training, 2) A large skilled workforce and flexible work practices, 3) A liberalized economic system based on free trade, 4) A multicultural society encouraging entrepreneurship, 5) An ability to learn from older developed economies, 6) Entrepot ports and strategic location, 7) Attractive to inward investment, 8) High investment and R/D spent compensating for lack of natural resources, 9) Influx of risk taking entrepreneurs with low tax regime.

Economic environment encompasses the conditions which determine aggregates such as national income, output, employment and price levels.

Government economic main objectives and priorities: 1) Faster and more sustainable economic growth; 2) Maintaining higher levels of employment; 3) Controlling inflation on very low level; 4) A favorable balance of payment averaged over a period.

Government economic subsidiary goals: 1) A balanced regional development, 2) Resource conservation, 3) Distribution of income reflecting equity, economic contribution, etc.

Sources of a persistent deficit: 1. Excess demand; 2. Import prices rise faster than export prices; 3. Economic weakness: 3.1 World demand is declining for the country's main exports, 3.2 A failure in supply (e.g. internal conflict), 3.5 Business structure favors declining industries, 3.6 Business culture, regulations or vested interests are preventing improvement.

See also National income, National output and National expenditures.

Economic forecast is a prediction of future economic conditions.

Economic indicators:
1. Activity and growth rates: 1.1 Volume of retail sales, 1.2 Volume of output, 1.3 Output and income per head, 1.4 Industry surveys (e.g. CBI) of investment intentions/confidence, 1.5 The rate relative to main competitors (gaps may prompt action!), 1.6 The public sector borrowing requirement (See below);
2. Inflation rates: 2.1 Cost of living index (e.g. RPI), 2.2 Rate of change in earnings, 2.3 The growth in the money supply, 2.4 Underlying rate of inflation, 2.5 Tax changes in the pipeline, 2.6 Rates of main competitors (implication for balance of payments);
3. Unemployment rates: 3.1 The rate of change is more important than the level, 3.2 Vacancies partially reflect strength of demand, 3.3 Unemployment rates elsewhere (beware comparability problems), 3.4 Regional spread of unemployment, 3.5 Rates among key groups: skilled, young, male, female;
4. Trade figures: 4.1 A potent symbol of international 'competitiveness' and success, 4.2 Relate to phase of cycle: should improve in recession, 4.3 Figures are often unreliable and subject to revision, 4.4 Share of world trade in manufactures reflects longer term performance;
5. Exchange rates: 5.1 Rate at which one currency ex-changes for another, 5.2 May be fixed by government or be free to reflect supply and demand, 5.3 Rise reflects strengthening in future prospects and vice versa, 5.4 Terms of trade reflects relative movement of import/export prices, 5.5 Exchange rates tend to fall if deficit on trade payments occurs,
6. Interest rates: 6.1 The price of borrowed money, 6.2 A fall encourages consumer spending and investment, reduces costs but discourages savings and overseas funds inflow, 6.3 A rise reflects the need to choke off demand or attract overseas funds to finance a balance of payments deficit.

Economic order quantity The order size that realizes the lowest combination of carrying and procurement costs. (Courtland L. Bovee, John V. Thill)

Economic policies: 1) Fiscal and budgetary, 2) Money and credit control, 3) Physical policies - wage and price controls, 4) Supply side, 5) Demand management.

Supply side economics is an approach to economic policy making which advocates measure to improve the supply of goods and services (e.g. through deregulation) rather than measures to affect aggregate demand.

Demand management is an approach to economic policy making which Seeks to control the level of aggregate demand through fiscal policy and / or monetary policy.

Economy - the need to minimize the cost of inputs.

EDI is system to link up the computers of different business allowing the interchange of electronic data between them.

Effectiveness
Definition 1. Effectiveness is the extent to which the output generated meets the objectives set for the organization.
Definition 2. Effectiveness is Doing the right job.

Improving effectiveness: I. Personal: 1) Planning (SMART), 2) Motivation, 3) Interpersonal skills (e.g. communication and delegation), 4) Personal Management (time management, the ability to meet deadlines, deal rationally with stress), 5) Knowledge and intellectual ability, 6) Previous achievement, 7) Remedies. II. Employee. s: A. People issues: 1) Reward packages (commission, PRP, group bonuses etc.), 2) Supervision and support, 3) Training and development, 4) Promotion/career progression, 5) Achievable targets; B. Product/market issues: 1) Marketing information system, 2) Development of internal documentation system (track client relation ships, future sales forecasts, strategic planning information, client preferences, key contracts etc.), Reviewing of marketing plan and salesforce objective (segmentation, targeting, retention rates, attracting new business etc.).

Efficiency
Definition 1. Efficiency is the process of maximizing the productivity of inputs.
Definition 2. Efficiency is a deployment of resources in the right way; outputs per unit input.

Effluent Liquid wastes discharged into seas or watercourses.

EFTPOS Electronic Funds Transfer at Point of Sale.

Elastic demand A price-demand relationship in which a decrease in price increases total revenue. (Courtland L. Bovee, John V. Thill)

Electoral cycle is a 4-5 year pattern of stop-go economic activity.

Electronic commerce
Types of Electronic Commerce: Internet, Electronic Mail (Email), Set-top Boxes, Channels and Electronic business card (Multimedia business card) and WAP-services.

Impacts and opportunities of Electronic Commerce : 1. Opportunity to develop a global strategy, 2. Global communication possibilities, 3. Product/market development opportunities, 4. Interactive opportunities, 5. Offers 24-hour service, 6. Inter-office linkages.

Potential dangers of Electronic Commerce : 1. Data security issues/data protection; 2. System failure; 3. System corruption; 4. System overload; 5. Competitor access.

Electronic Mail (Email) is the transferring of messages and files to other computers anywhere in the world, quickly and cheaply.

See also World Wide Web and Internet.

Electronic Point of Sale (EPOS) data is information captured electronically at the point of sale. Items are scanned, using a bar code reader, by sales assistants or alternatively scanned by the shopper using a portable reader. Each bar code hold a wealth of information, including item identification, price, store location and so on. Thus, scanning each pack not only registers the sale but updates the held on the store's computer system.

Electronic shopping Direct marketing through a two-way system that links con-sumers with the seller's computerized catalog by cable or telephone lines. (Philip Kotler)

Embargo is a prohibition on the export of a particular good or classes of goods to certain countries, usually for political reasons.

Emergent strategy is strategy developed out of a pattern of behavior not consciously imposed by senior management.

Emissions Release of gases into the atmosphere.

Emotional appeals Message appeals that attempt to arouse negative or positive emotions that will motivate purchase; examples include fear, guilt, shame, love, humor, pride, and joy appeals. (Philip Kotler)

Employers' association Group of employers in a particular industry.

Employment trends: 1. The decline in full-time employment; 2. The corresponding rise of part-time; 3. Self-employment is rising sharply; 4. A rise in contractual and temporary employment; 5. The emergence of flexible organizations: 5.1 High turnover semi-skilled full-timers, 5.2 Part-timers, 5.3 Temporary workers, 5.4 Job shares, 5.5 Staff on short or temporary contracts, 5.6 Staff on short or temporary contracts, 5.7 Student industrial placements, 5.8 Government trainees, 5.9 Homeworkers, 5.10 Subcontractors; 6. The rise of the knowledge worker; 7. Flexible work lives: 7.1 Flextime, 7.2 Staggered hours, 7.3 Flexible fork years, 7.4 Longer days but shorter weeks, 7.5 2 x 12-hourweekend shifts, 7.6 Planned reduction in hour toward retirement, 7.7 Working from home; 8. Self-service economy.

Main reasons for being self-employed: 1) Independence, 2) Lack of paid employment, 3) Redundancy payment provided, 4) Opportunity, 5) Encouragement trough tax measures, 6) Lack of promotion or recognition in paid employment, etc.

Empowerment involves shifting responsibility to employees further 'down' the management hierarchy.

Enabling act is a statute which establishes a framework within which some subordinate body, often a minister, is 'enabled' or empowered to fill in the details by delegated legislation.

Engel's laws Differences noted more than a century ago by Ernst Engel in how people shift their spending across food, housing, transportation, health care, and other goods and services categories as family income rises. (Philip Kotler)

Enlightened marketing A marketing philosophy holding that a company's marketing should support the best long-run performance of the marketing system.
The five principles of enlightened marketing include (i) consumer-oriented marketing, (ii) innovative marketing, (iii) value marketing, (iv) sense-of-mission marketing, and (v) societal marketing. (Philip Kotler)

Consumer-oriented marketing A inciple of enlightened marketing which holds that a company should view and organize its marketing activities from the consumers' point of view.

Innovative marketing A principle of enlightened marketing which requires that a company seek real product and marketing improvements.

Value marketing A principle of enlightened marketing which holds that a company should put most of its resources into value-building marketing investments.

Sense-of-mission marketing A principle of enlightened marketing which holds that a company should define its mission in broad social terms rather than narrow product terms.

Societal marketing A principle of enlightened marketing which holds that a company should make marketing deci-sions by considering consumers' wants, the company's requirements, consumers' long-run interests, and society's longrun interests.

Enterprise culture is the climate encourages and approves self-reliance, entrepreneurship individual wealth creation.

Entrepreneur is an economic agent who organizes the exploitation of factors of production in a firm.

Entry barriers These discourage firms from entering an industry.

Environment is what exists outside the boundary of a system.

A Micro environment includes those forces which impact on the business, creating opportunities and threats, but over which it has no real control or influence: 1) Customers, 2) Competitors, 3) Suppliers, 4) Distributors.

B Macro environment includes the groups and organizations that have a two-way operational relationship with the business and which are controlled and influenced by it to some degree (See Stakeholders): 1) Political and Legislation, 2) Economical, 3) Social and 4) Technical factors.

Guidance for macro-economic environment scanning (PEST):
1. Political/legal: 1.1 Anti-trust regulations, 1.2 Environment protection laws, 1.3 Tax laws, 1.4 Special incentives, 1.5 Foreign trade regulations, 1.6 Attitudes toward foreign companies, 1.7 Laws on hiring and promotion, 1.8 Stability of government;
2. Economic : 2.1 GNP trends, 2.2 Interest rates, 2.3 Money supply, 2.4 Inflation rates, 2.5 Unemployment levels, 2.6 Wage/price controls, 2.7 Devaluation/revaluation, 2.8 Energy and resources availability and cost, 2.9 Disposable and discretionary income;
3. Social/cultural : 3.1 Life-style changes, 3.2 Career expectations, 3.3 Consumer activism, 3.4 Rate of family formation, 3.5 Grown rate of population, 3.6 Age distribution of population, 3.7 Regional shifts in population, 3.8 Life expectancies, 3.9 Birth rates;
4. Technological : 4.1 Total governmental spending for R&D, 4.2 Total industry spending for R&D, 4.3 Focus on technological efforts, 4.4 Patent protection, 4.5 New products, 4.6 New developments in technology transfer from lab to marketplace, 4.7 Productivity improvement through automation.

Business environment: 1) Political and legal factors (employment legislation, advertising laws, legislation affecting sales and purchasing and credit controls); 2) Economics influences (income levels, employment levels, the rate of inflation and grow rates in the economy); 3) Social influences (friends and family, fashions, politics, and political influences); 4) Technological influences (information technology, new forms of leisure, romantics and computer aid manufacturing/design).

Environmental influences on organization:
1. Internal influences :1.1 The corporate culture (The attitudes, behaviors and values of the workforce), 1.2 The management style (How work gets done, the greater the motivation of the staff), 1.3 Size and complexity of the organization (Efficiency of work, speed of responsiveness);

2. External influences: 2.1 Quality of supplier relations (Reciprocity would strengthen high quality relationship with right type of suppliers); 2.2 Competitiveness of market (Organizational efficiency and market orientation; 2.3 Nature of customer base (type of market (Brand-sensitive - heavy-investing in promotional mix, changing market - customer research and maintain a competitive position); 2.4 Impact of regulatory processes (High-requited market - invest to stay within new regulations); 2.5 Impact of social change (Changing industry in taste or fashion - perceiving as opportunity, proceed to develop or modify production); 2.6 The impact of technical change (New technology facilitates - opportunity for increased speed, flexibility and better quality); 2.7 Impact of economical and political change (Rising and falling interest, tax and government spending have to be predict).

Environmental change involves alteration to the nature and significance of factors in the organization's environment. The impetus may arise from a variety of sources, e.g. changing attitudes, tastes, technologies, laws or economic circumstance.

Changes of the environment:
A External environment:
1. Political and legislation factor: 1.1 Competitive trending, 1.2 Reduced funding, 1.3 Reduced regulatory control (increasing increased competition and organizational efficiency).
2. Economic factor: 2.1 Economic cycles - recent recession (rationalizing operations, merges); 2.2 Decrease in production (fewer production line workers, fewer supervisors and middle managers), 2.3 Changing spending patterns, 2.4 Impact of globalization. 3. Social and demographic factor: 3.1 Population shifts (aging in North America and Europe), 3.2 The importance of the youth market, 3.3 Changing family structure, 3.4 Introducing new working practices, with more job share; 3.5 Increasing in the role of women in work and society (increase number of full-time women workers, etc.); 3.6 Multi-skilling; 3.7 Employment trends, 3.8 Religious values and Sunday observance, 3.9 Healthy living and fitness trends, 3.10 Move from cities, 3.11 Rise in leisure,
4. Technological factor (innovations and increased automation): 4.1 Reduced administration requirements, 4.2 Increased productivity with fewer workers mechanization of routine tasks, 4.3 Managerial activities, 4.4 Database marketing, 4.5 JIT, 4.6 Multimedia activities, 4.7 Advances such as (a) ATMs in banking, (b) EPOS in retailing, (c) CD-ROM and DVD-ROM databases, (d) Video conferencing, (e) Television shopping, (f) Smart cards, (g) Home banking, (h) Global technologies and communication networks, (i) Parallel processors, (j) Neural networks and the Internet, (k) Home shopping, (l) CAD/CAM/CAE, (m) FMS, (n) CIM, (o) EFTPOS, (p) EDI, (q) Global communications.
5. Environmental pressures: 5.1 Increasing congestion, 5.2 Rising concerns (noise), 5.3 Rise in pressure group membership, 5.4 Ozone/greenhouse gases emissions.

B Internal (organizational) factors: 1) Empowerment of staff, 2) Less management intervention, 3) Flatter management structures (de-layering of middle management), 4) Outsourcing market research, public relation, cleaning, information processing).

Environmental forecasting: I. Economic forecasting: 1.1 GDP, 1.2 Consumer spending, 1.3 Investment and stock, 1.4 Government spending, 1.5 Exports and imports, 1.6 Economic indicators, 1.7 Confidence survey. II. Political forecasting: 2.1 Election outcomes, 2.2 Legislation, 2.3 Changing goals and philosophy, III. Social forecasting: 3.1 Environmental concerns, 3.2 Changing values, 3.3 Demographic change, 3.4 Life style, 3.5 Work and leisure patterns. IV. Technological forecasting: 4.1 State-of-the-art developments, 4.2 Own developments and diffusion rates, 4.3 Competitor developments.

The key problems: 1) Which are the right forecasts? 2) How significant are the different trends? 3) How long before a pattern of events become a trend? 4) Where are the turning points? 5) Which are the discontinuities? 6) What is the place of change?

Information required to environmental forecasting: 1. Competitors: 1.1 Prices, discounts, Credit terms; 1.2 Sales volumes by segment, product, region, distribution channel; 1.3 Market shares; 1.4 Promotional activities, catalogues, distributor incentives; 1.5 New product development, expansion plans, changes in personnel; 1.6 Financial strength and relationships with key stakeholders; 2. Industry: 2.1 Sales volumes by product, segment, region and country, 2.2 Sales growth and seasonal/cyclical patterns, 2.3 Production capacities, levels, plans, and stock positions; 2.4 Technical change and investment plans; 3. Economy : 3.1 Main economic indicators - inflation, interest rates, vacancies; 3.2 Business confidence indicators - capacity utilization, investment; 3.2 Labor market changes; 3.3 National income, output and expenditure patterns; 3.4 Government taxation and spending plans.

See also Demand function, Depth interview, Multiple regression, Moving averages, Exponential smoothing, Probability.

Environmental management perspective A management perspective in which the firm takes aggressive actions to affect the publics and forces in its marketing environment rather than simply watching and reacting to them. (Philip Kotler)

Environmental networks are contacts formed and maintained with various individuals, groups and organizations concerned with the environment.

Environmental set
Definition #1. Environmental set is the features of the environment which are of current concern to an organization. The environmental set changes over time.
Definition #2. Environmental set is a ranking of the key environmental factors currently impacting on the organization and specific to it.
Possible factors of environmental set: 1) Lack of "feel good" factor, 2) Domestic competition, 3) Falling/ Increasing exchanges rated, 4) Impending election, 5) Falling/Increasing interest rates, 6) Rising impute prices, 7) Rising exchange, 8) Post-election policy changes, 9) Buoyancy in domestic consumer spending, 10) Skill shortages, 11) Environmental legislation, 12) Green issues, 13) Social and environmental issues, 14) Relaxation of capital receipts, 15) State of local economy.

See also Business cycle.

Environmentalism is an ethos which puts fundamental importance on the relationship between human beings and their actions with the physical environment (ecology).

Demands of environmental pressure groups: 1) Conservation of resources, 2) Re-use, redesign and recycling of products, 3) Energy saving, 4) Elimination of non-eco-friendly products, 5) Animal rights, 6) Protection of natural environment and endangered species, 7) A slowing of economic growth.

Threads of ignoring business environment: 1) Deterioration the corporate image in the eyes of stakeholders, 2) Preferring less harmful alternatives by customers, 3) Difficult recruitment and retention of quality staff, 4) Unnecessarily strict legislation, 5) Cost penalty (higher energy bill, insurance), 6) Loss of community support, harder attitude from authorities, 7) Increasing competitive disadvantage, 8) Loss the investment appeal.

Activities responded to pressure from environmentalists: 1) Listen to them, 2) Consult with them, 3) Liaise with them, 4) Work with them, 5) Support them to work for you, 6) Oppose them.

Environmentalists are individuals, groups and organizations who Seek to apply political, economic and moral pressure on business to adopt sustainable operations.

The main types of data that can be captured by EPOS system are as follows: 1) Sales by stock item (stock code), 2) Sales by department, 3) Sales by store, 4) Sales by in-store area location, 5) Sales by pack size, 6) Fast-moving stock items, 7) Slow-moving stock items (items to delete), 8) Sales by brand, 9) Sales of own-label product, 10) Hourly, daily or weekly sales, 11) Sales per customer, 12) Sales by staff member or till location, 13) Transaction type (credit card, cash, check).

Usage of EPOS data captured: 1. Promotions: 1.1 Coupons, 1.2 'Multy-buy' offers, 1.3 Special offers and discounted prices; 2. Maximizing profit by adjustment to the range of lines stoked; 3. Increasing retail efficiency 3.1 by using staff more efficiently, 3.2 by qualitative measure of display effectiveness, etc.; 4. Building customer loyalty by loyalty card.

Ethics
Definition #1. Ethics are morale principles which govern the behavior of individuals and organizations and their decision choices.
Definition #2. Ethics is the enquiry into morality (i.e. what is right and wrong, and the yardsticks by which people assess what is right or wrong).

Business ethics is an enquiry into the moral dimensions of business activities; descriptive ethics merely describes moral matters; prescriptive ethics passes judgment on them.

Examples of business ethics: 1) Obey the law, 2) Tell the truth, 3) Respect for individuals, 4) Above all do not harm.

The attitudes to corporate ethics (Reidenbach and Robin): 1. Amoral organizations are prepared to condone any actions that contribute to the corporate aims. 2. Legalistic organization obey the law but not necessarily the spirit of it, if that conflicts with economic performance. 3. Responsive companies those that take a view - perhaps cynically, perhaps not - that there is something to be gained from ethical behavior. 4. Emerging ethical (or 'ethically engaged') organizations take an active (rather than reactive) interest in ethical issues. 5. Ethical organization have a 'total ethical profile': a philosophy that inform everything that the company does and a commitment of the part of everyone to carefully selected core values.

Ethnocentrism In international marketing terms, overseas operations are viewed as secondary to domestic operations (e.g. as a way of getting rid of surplus production). In cultural terms, it implies attitudes of cultural (and racial) superiority so ingrained that other cultures are denied any importance.

EU (European Union) is political and economic association comprising 15 European countries; formerly called the European Community (EC) itself formerly called the European Economic Community (EEC)

The main changes of European Union (at 1997): 1) The removal of frontier controls reducing delays, journey times, custom resource deployed and costs, 2) Public procurement opened up to non-national companies, 3) Financial services deregulated, 4) Supply side changes to create European product standards and regulations.

Entry strategies into EU markets: 1) Licensing agreement, 2) Sales agents (capital goods)/distributors (fmcgs), 3) Franchise arrangements, 4) Joint ventures and other collaborations, 5) Acquisition of a foreign concern, 6) Direct investment in own facilities.

Evaluative criteria The attributes, features, and standards used when comparing alternatives. (Courtland L. Bovee, John V. Thill)

Events Occurrences staged to com-municate messages to target audiences, such as news conferences, grand openings, or others. (Philip Kotler)

Evoked set See Buyer Behavior Theory.

Excellence 1980s theory of organizational success, derived from US business culture, which concentrated on operating issues, human resource management and culture, rather than strategic issues.

Exchange The transfer between two or more parties of tangible or intangible items of value. (Courtland L. Bovee, John V. Thill)

Exchange rate is the price of a currency expressed in terms of another currency.

Exclusion clause Contract clause purporting to exclude or restrict liability.

Executive information system is a form of data retrieval system that provides selected and summarized information for senior executives.

Executive summary Is a first component of marketing plan that consist a short summary of the main goals and recommendations to be presented in the plan.

Exclusive distribution Intermediaries are given exclusive rights in certain territories but are expected to give a high degree of service in return.

Exchange risk The risk that the monetary value of a transaction when translated/remitted in the home currency will differ from what was anticipated, as a result of changes in the rate of exchange, if the transaction occurred in a foreign currency.

Exhibitions
Factors determining the decision whether to take part in an exhibitions: 1) Location, 2) Exhibition hall, 3) Stands, 4) Exhibitors, 5) Visitors, 6) Technological and industrial environment.
Motives for exhibiting: 1) Maintaining market share, 2) Market penetration, 3) Market development, 4) Market research, 5) Sales promotion.
Exhibition literature production checklist: 1) Texts: (i) exhibitor's language, (ii) one foreign language, (iii) multinational; 2) Format: (i) uniform, (ii) multiform, (iii) international standard, (iv) target-market standard, (v) special format; 3) Make-up: (i) catalogues, (ii) brochures, (iii) pamphlets, (iv) sheets, (v) covers, (vi) folders, (vii) wallets, (viii) self-binders, (ix) ring-binders; 4) Quality: (i) average, (ii) superior, (iii) luxury; 5) Packing (i) for transport, (ii) for stand storage, (iii) dispensing from stand, (iv) added publicity.

Exit barriers These make it difficult for firms to withdraw from an industry.

Expected products The basic set of values that customers expect in exchange for the price they pay. (Courtland L. Bovee, John V. Thill)

Expenditure reducing policies
Definition #1. Expenditure reducing policies involve increases in taxation and reduced government spending programs to bring about a general reduction in imports.
Definition #2. Expenditure reducing policies involve reducing aggregate demand through higher taxes/ reduces state spending. Reduced discretionary income will force households to spend less on all goods including imports.

Impacts of expenditure reducing policies: 1. Domestic marketers: 1.1 Volumes fall, 1.2 Margins will come under pressure as competition intensifies, 1.3 Consumer will reduce sharply their demand for high income elasticity products (e.g. cars), 1.4 Barriers to entry will raises facilitating the capture of higher market share and improved margins; 2. International marketers: 2.1 the exchange rate devaluation and export promotion initiatives will assist international marketer: either improve profitability in domestic currency terms or allow scope for reducing prices in foreign currency terms so increasing volume sales, 2.2 Pressure from the Board of Direction to increase export efforts and progressive cost reduction will improve relative competitiveness over time.

Expenditure switching policies
Definition #1. Expenditure switching policies involve actions to improve the attractiveness of domestically produced products at the expense of imports.
Definition #2. Expenditure switching policies involve policies that cause domestic spending to switch away from imports to home produced goods. They also may cause foreigners to switch their spending from other consumption to our exports. Policies include export promotion, increased tariffs and quotas, stricter non-tariff barriers and devaluation.

Experiment Research in which one or more variables are changed while others are kept constant so that the results can be measured. (Courtland L. Bovee, John V. Thill)

Expert opinion Forecasting techniques which involve interviewing key knowledgeable people or industry players and asking them to assign probabilities to possible future outcomes. In the panel of expert opinion a group of experts gathered together to discuss the future and establish forecast.

Advantages of expert opinion :
1. Cheap method; 2. Quick method; 3. Relies on knowledgeable, experienced people.

Disadvantages of expert opinion :
1. Qualitative (not quantitative) method; 2. One or more members may dominate the group; 3. Experts may be incompetent.

See also Delphi method.

Expert system is an applications software system which is used to store data relevant to a particular subject area and to provide solutions to problems requiring discriminating judgment based on that data.

Exploratory research A type of research conducted to clarify the problem definition and prepare for additional research to prove or disprove the hypothesis. (Courtland L. Bovee, John V. Thill)

Exponential smoothing Method of short-term forecasting which involves the automatic weighting of past data with weights that decrease exponentially with time.

Export-led growth Approach adopted by some countries which sought to promote economic growth by exposing to wealthier countries; sometimes this went hand in hand with protected local markets or artificially low exchange rates and restrictions on capital movements.

Externalities Positive or negative external effects on third parties resulting from production and consumption activities.

Extranet See Internet.