Marketing chapter three key terms

Environmental Scanning

The process of collecting information about forces in the marketing environment through observation, secondary sources (like business publications), and marketing research

Environmental Analysis

The process of interpreting and assessing the information gathered through scanning to identify potential threats and opportunities

Competition

Other organizations that market products that are similar to or can be substituted for a marketer’s products in the same geographic area

Brand Competitors

Firms that market products with similar features and benefits to the same customers at similar prices (e.g., Diet Coke vs. Diet Pepsi)

Product Competitors

Firms that compete in the same product class but market products with different features, benefits, and prices (e.g., Soda vs. Iced Tea)

Generic Competitors

Firms that provide very different products that solve the same basic customer need (e.g., Soda vs. Tap water)

Total Budget Competitors

Firms that compete for the limited financial resources of the same customers (e.g., a soda vs. a pack of gum)

Monopoly

A competitive structure where one organization is the sole source of supply for a product that has no close substitutes

Oligopoly

A competitive structure in which a few sellers control the supply of a large proportion of a product (e.g., the airline industry

Monopolistic Competition

A structure where a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product

Pure Competition

An ideal market structure with an extremely large number of sellers, none of whom can significantly influence price or supply; this does not exist in the real world

Business Cycle

A pattern of economic fluctuations that generally consists of four stages: prosperity, recession, depression, and recovery

Prosperity

A stage of the business cycle with low unemployment and high total income, which creates high buying power

Recession

A stage where unemployment rises and buying power declines, causing both consumer and business spending to drop

Depression

A period of extremely high unemployment and low wages where disposable income is at a minimum and consumer confidence is very low

Recovery

The stage in which the economy moves away from recession or depression back toward prosperity

Buying Power

The resources—such as money, goods, and services—that can be traded in an exchange

Income

The amount of money received through wages, rents, investments, and pensions for a given period

Disposable Income

The amount of money left after payment of taxes; it is used for spending or saving

Discretionary Income

Disposable income available for spending after purchasing basic necessities like food, clothing, and shelter

Wealth

The accumulation of past income, natural resources, and financial resources (e.g., cash, real estate, or savings)

Willingness to Spend

A consumer's inclination to buy based on their expected satisfaction from a product and their feelings about the economy

Federal Trade Commission (FTC)

A federal agency that regulates business practices and curbs false advertising, misleading pricing, and deceptive packaging

Better Business Bureau (BBB)

A nongovernmental, local regulatory agency supported by businesses that helps settle problems between customers and specific firms

National Advertising Review Board (NARB)

A self-regulatory unit that reviews challenges to advertisements and helps maintain ethical standards in the industry

Technology

The application of knowledge and tools used to solve problems and perform tasks more efficiently

Sociocultural Forces

Influences in a society and its culture that change people’s attitudes, beliefs, norms, customs, and lifestyles

Consumerism Organized efforts

by individuals, groups, and organizations to protect the basic rights of consumers