MKT 301- JSU - Ch 2

Chapter 2 - The Marketing Environment

success; failure

Continued monitoring of forces that impact their business is often the difference between _____ and ________ for marketers.

internal factors

Employees, products, and manufacturing processes are considered ____________.

external factors

Customers and corporate partners are considered _________.

External Environmental factors

Demographic, Economic, Sociocultural, Political/Legal, Competitive, Technological are examples of

True

True or False: In marketing, nothing ever stays the same.

the marketing environment

Internal and external factors that affect firms and may help or hurt a product in the marketplace describes what?

environmental scanning

the act of monitoring developments outside the firms control with the goal of detecting and responding to threats and opportunities

marketing environment

Company strengths, competitors action, and corporate partners are examples of the ________

macro-environmental factors

Technology, Economic influences, demographics and culture are examples of _______ _________.

immediate environment

made up of both internal and external factors

market research

What is one of the most important tasks that marketers perform?

Technology

__________ is the fastest growing force that a business must respond to in order to remain competitive.

Demographic

Offering a unisex line of clothing in a clothing store is an example of which external factor?

Economic

Choosing to carry/wear more fast fashion apparel that is less expensive is an example of which external factor?

Sociocultural

Changing cultural desires for more sustainable and ethical products is an example of which external factor?

Political/Legal

Firms being required to adhere to strict regulations on ethical sourcing and carbon emissions is an example of which external factor?

Competitive

If other brands are beginning to offer more sustainable clothing across all clothing styles and trends, this would be an example of which external factor?

Technology

If you change technology to be able to source material in a more ethical and sustainable way, this would be an example of which external factor?

Demographics

Characteristics of the human population that can be used to identify consumer markets?

Demographics

Age, gender, education level, and ethnicity, all which influence what products people buy, are all examples of what?

Age

______ related population trends are important to marketers because they indicate changes in how and what consumers will buy in the future.

85

Female consumers now account for _______ percent of all consumers.

Asian American

What ethnicity has the highest family income in the US?

True

True or False: Having a higher income allows you to increase your purchasing power, therefore you become of an importance to a marketer?

50

Retiring baby boomers make up only a quarter of the US population but account for _____ percent of the consumer spending since they have disposable income and more time to spend it.

The four main economic elements that influence marketers

Gross domestic product (GDP), income distribution, inflation, and consumer confidence are what?

gross domestic product (GDP)

the market value of all officially recognized final goods and services produced within a county in a given period

living

GDP per capita is often considered an indicator of a country’s standard of _______.

economy

Overall GDP is the most common gauge of the expansion and contraction of the _______.

recession

Occurs when overall GDP declines for two or more consecutive quarters

inflation

an increase in the general level of prices of products in an economy over a period of time

purchasing power

The amount of goods and services that can be. purchased for a specific amount of money

Consumer confidence

Measures how optimistic consumers are about the overall state of the economy and their own personal finances

GDP

Layoffs, increased unemployment, and reduced consumer confidence are examples of which impact of economic changes?

Income distribution

Targeting customers at Dollar General to Louis Vitton is an example of which impact of economic changes?

Inflation

Providing evidence showing the value of education (since it has risen 440% since the 80’s, is an example of which impact of economic change?

Consumer confidence

Launching a buyer assurance program for customers who are fearful of buying a car because of possibly losing their job is an example of which impact of economic change?

Sociocultural

Refers to the combination of social and cultural factors that influence individual development.

Sociocultural

A money rich - time poor society reflects what?

sociocultural

Online banking, gluten free products, collecting large amounts of data to predict and analyze behavior are examples of ______.

Conscious

______ marketing is an approach to marketing that focuses on four key principles: having a higher purpose, considering stakeholders, creating a conscious company cultural, and using ethical decision making.

Federal Trade Commission (FTC)

What is the main federal organization that affects marketing?

Federal Trade Commission (FTC)

Ensure business compete fairly with each other and ensure businesses do not take advantage of customers are laws governed by ______________?

Sherman Antitrust Act (1890)

Combats anticompetitive practices, reduces market domination by individual corporations, and preserves unfettered competition as the rule of the trade

Robinson-Patman Act (1936)

Prohibits firms from selling the same product at different prices in interstate commerce unless based on a cost difference or if the goods ar not of similar quality.

Wheeler-Lea Amendment (1938)

Authorizes the Federal Trade Commission (FTC) to restrict unfair or deceptive acts; also called the Advertising Act

Fair Packaging and Labeling Act (1966)

Applies to labels on many consumer products

Telephone Consumer Protection Act (1991)

Limits commercial solicitation calls between 8 a.m. and 9 p.m. and forces telemarketers to maintain a do not call list and honor any request to not be called again

Credit Card Accountability, Responsibility, and Disclosure Act (2009)

Protects consumer rights and abolishes any perceptive lending practices.

Direct competitors

firms that compete with products designed around the same or similar characteristics

Indirect competitors

Firms that compete with products that have different characteristics but serve a similar function

logging

Scanning what the competition is doing is considered a _______ indicator.