Marketing Chapter 3

Environmental Scanning

the process of collecting information about forces in the marketing environment (outside ring that affects the marketing environment *forces)

Environmental Analysis

the process of assessing and interpreting information gathered through environmental scanning (often the difference in interpreting and making decisions or looking at the circumstance)

Competition

other firms that market products that are similar or can be substituted for a firm's products in the same geographic area

Brand

firms that market products with similar features and benefits to the same customers at similar prices (considered to be the most significant because they can direct competitors

Product

firms that compete in the same product class but market products with different features, benefits, and prices (within the same product class)

ex. you could buy a Pepsi or a different drink from the cooler

Generic

firms that provide very different products that solve the same problem or satisfy the same basic customer need (different products that satisfy the same need)

Total Budget

firms that compete for the limited financial resources of the same customers (especially luxury goods)

\*there are many other goods that could be bought instead

Monopoly

a competitive structure in which and organization offers a product that has no close substitutes, making that organization the sole source of supply

\*generally regulated significantly at all levels, watch for price gouging, poor customer service

Oligopoly

a competitive structure in which a few sellers control the supply of a large proportion of a product

* takes a lot of resources to have, very regulated
* ex. oil refineries, steel mills, and cell phone providers

Buying power (size of resources)

depends on the size of resources, what goods and services can be used for exchange

Disposable income

after-tax income

Discretionary income

disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter

* \*taxes are also taken out before

Incomes

the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period

Credit

allows people to spend their future income now (increases your current buying power at the expense of your future buying power)

Wealth

the accumulation of your past income and your financial resources

Willingness to Spend

an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy numerous psychological and social forces

Prosperity

unemployment is low, and total income is relatively high this combination ensures:

* high buying power
* marketers try to expand ____
* hold more in inventory

\*part of business cycle

recession

unemployment rises, total buying power declines

* stifles both consumer and business spending

Depression

unemployment rises, total buying declines

* stifles both consumer and business spending

recovery

economy moves depression for recession to prosperity. During this period, high unemployment begins to declines, total disposable income increases, and economic gloom that reduced consumers' willingness to buy subsides. Takes months for recovery to happen, Buying power increases

political

what laws we create, what laws we will enforce

Sherman Antitrust Act (1980)

prohibits contracts, combinations, or conspiracies to restrain trade

Clayton Act (1914)

prohibits specific practices such as price discrimination, exclusive dealer arrangement, and stock acquisitions in which the effect may notably lessen competition or tend to create a monopoly, restricting trade

Robinson-Patman Act

prohibits price discrimination that lessens competition among wholesalers or retailer; prohibits producers from giving disproportionate services of facilities to larger buyers

FTC

affects our life the most, has the most power, misleading pricing, packaging, advertising. FTC investigatory powers to be used in preventing unfair methods of competition

Consumer Protection List

nutrition labeling and education act, children's online privacy prot4ection act, do not call implantation act, Dodd-Frank Wall Street Reform and consumer protection act

Social cultural forces

are the influences in a society and its cultures that bring about changes in attitudes, beliefs, norms, customs, and lifestyles

* demographics, changing values, norms, culture

social responsibility

an organization's obligation to maximize its positive impact and minimize its negative impact on society (total effect of the company)

marketing citizenship

the adoption of a strategic focus for fulfilling the economic, legal, and philanthropic social responsibilities expected by stakeholders

Economic

be profitable / the foundation upon which all others rest

\*apart of the dimensions pyramid

Legal/Obey Laws

obey the law/ law is society's codification of right and wrong/ play by the rules of the game

\*apart of the dimensions pyramid

Ethics (market ethics)

be ethical/ obligation to do what is right, just, and fair/ avoid them

\*apart of the dimensions pyramid

Stakeholders

companies that consider the diverse perspectives of stakeholders in their daily operations and strategic planning

\*apart of the dimensions pyramid

philanthropy

be a good corporate citizen/ contribute resources to the community; improve quality of life *not required by law

cause-related marketing

link your products to a social cause (can be short term or long term)

strategic philanthropy

synergistic use of your core competencies and resource to address key interests

ex. Lowes/Home Depot partnering with habitat for humanity

Systainability

making decisions to preserve and protect our natural environment

ex. fish out regulations - put caps on

Consumerism

about the efforts to protect both individuals and organizations rights

JFK's consumer bill of rights(1960s)

right to safety- producers should not offer products that can harm its consumers

right to be informed- you should get to see all the information before you buy it

right to choose- you should have competition

right to be heard- at each governmental level

Ethics

principles and standard that define ethical conduct

Ethical issue

an identifiable problem, situation, or opportunity requiring a choice among several actions that mist be evaluated as right or wrong, ethical, or unethical

Company industry & society

"easier to ask for forgiveness rather than permission" / "they did it so we can do it too"

Product issues (4ps)

failing to disclose risks associated with it

failing to disclose information about a ________'s function, value, or use

failing to disclose information about changes in the nature, quality, or size of a _____

Pricing issues (4ps)

___ fixing

predatory ____

failing to disclose the full ____ of a purchase

Distribution issues (4ps)

failing to live up to the rights and responsibilities associated with supply-chain member roles (eg. manufactures, wholesalers, distributors, retailers)

* manipulating product availability
* using coercion to force intermediaries to behave in a certain way

Promotion Issues (4ps)

* false or misleading advertising
* using manipulative or deceptive sales ______, tactic, and publicity
* offering accepting bribes in personal selling situations

3 moral philospohies

use as a guideline for making our decisions, one is not better than the other, depends on situation

ethical formalism

what were the attention associated with the behavior/ often talked about as the golden rule \= treat others how you want to be treated

utilitarianism

maximize the greatest food for the greatest number of people/ needs of the many outweigh the needs of the few

rights view

you're basing your ethical decisions based on the rights given/ inherit of people/ constitution, laws, rights

codes of conduct

every industry has one

* can look at competitors to find/ put into your handbook/ find problems and address them so they are not in the news