MKTG 2080: Principles of Marketing - Module 2: Analyzing the Market Environment (Vocabulary Flashcards)

Vocabulary flashcards covering key terms from the lecture notes on analyzing the market environment.

Macroenvironment

The broad, external forces that influence marketing decisions, including culture, demographics, economics, political/legal factors, technology, social trends, and the physical environment.

Immediate environment

The near, controllable factors around the company: the company itself, competitors, customers, corporate partners, and the physical environment.

Company (in marketing environment)

Firms focus on satisfying customer needs and wants that align with their core competencies.

Competitors

Other firms offering similar benefits; a company’s market position influences its advertising strategy and value-based marketing aims to outperform rivals.

Corporate partners

Other companies that partner with the focal firm to create products or enhance value for consumers.

Physical environment

The natural environment; sustainability concerns influence products and can be influenced by marketing (includes energy trends and green marketing, and concepts like greenwashing).

Culture (macroenvironment)

The shared meanings, beliefs, morals, values, and customs of a group; culture varies across countries and regions.

Demographics

Characteristics of populations used to identify consumer markets (age, income, education, gender, ethnicity); a common basis for segmentation.

Social trends

Patterns in society such as sustainability, health and wellness, and efficient food use/distribution.

Technology

Advances that create new products/services, new forms of communication, and new retail channels; includes AI, robotics, IoT, and raises privacy concerns.

Economic environment

The state of the economy that affects how and how much people buy; factors include inflation, exchange rates, and interest rates.

Political/Legal environment

Laws, government agencies, and policies that influence how businesses operate and promote fair competition.

UN Sustainable Development Goals

Global goals guiding social, economic, and environmental progress toward sustainable development.

Sustainability

Meeting present needs without compromising future generations; aims to reduce environmental harm and resource depletion.

Greenwashing

Misleading claims about a product’s environmental friendliness to appear eco-friendly.

Universal appeal

When needs and wants are similar across cultures, allowing products to appeal broadly across markets.

Food use & distribution

Issue noting that a large portion of US food goes uneaten (around 40%), leading to waste and prompting calls for efficiency.

AI (Artificial Intelligence)

Technology enabling machines to perform tasks that typically require human intelligence, used for insights, automation, and personalization in marketing.

IoT (Internet of Things)

Network of connected devices collecting data and enabling new marketing opportunities and customer insights.

Privacy concerns

Issues related to collecting, storing, and using consumer data; highlights the need for data protection and responsible practices.

Federal Food and Drug Act (1906)

Established the FDA; prohibited adulterated or fraudulently labeled food and drug products.

Federal Trade Commission Act (1914)

Created the FTC to regulate unfair competition and deceptive practices.

Fair Packaging and Labeling Act (1966)

Requires packaging to disclose contents, manufacturer, and quantities.

Child Protection Act (1966)

Prohibits sale of harmful toys and sets standards for child-resistant packaging.

Federal Cigarette Labeling and Advertising Act (1967)

Requires cigarette packages to carry health warnings about smoking hazards.

Consumer Product Safety Act (1972)

Created the Consumer Product Safety Commission to regulate safety standards for consumer products.

Nutrition Labeling and Education Act (1990)

Requires nutritional information to be displayed on product labels.

Telemarketing Sales Rule (1995)

Regulates telemarketing practices; penalties for fraudulent activities enforced by the FTC.