Marketing the Core Chapter 3 (Kerin and Hartley 7th Edition)

Environmental scanning

the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends (aka, competitive, regulatory, technological, economic, social)

Social forces

the demographic characteristics of the population and its culture

Demographics

describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

Baby boomers

includes the generation of 76 million children born between 1946 and 1964

Generation X

includes the 50 million people born between 1965 and 1976. Also called the baby bust

Generation Y

includes the 72 million Americans born between 1977 and 1994. Also called the echo-boom or the baby boomlet

Culture

the set of values, ideas, and attitudes that are learned and shared among the members of a group

Economy

pertains to the income, expenditures, and resources that affect the cost of rung a business and household

Technology

inventions or innovations from applied science or engineering research

Marketspace

an information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecomunication technologies and digital offerings

Internet of Things (IoT)

the network of products embedded with connectivity-enabled electronics.

Competition

the alternative firms that could provide a product to satisfy a specific market's need

Regulation

restrictions state and federal laws place on a business with regard to the conduct of its activities

Consumerism

a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions

Self-regulation

an alternative to government control whereby an industry attempts to police itself

Ethics

the moral principles and values that govern the actions and decisions of an individual or group

Consumer Bill of Rights (1962)

a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard

Ethics of Competition

two types of most common 1) economic espionage 2) bribery

Code of ethics

a formal statement of ethical principles and rules of conduct

Moral idealism

a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome

Utilitarianism

a personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior

Social responsibility

the idea that organizations are part of a larger society and are accountable to that society for their actions

1) Profit responsibility 2) Stakeholder responsibility 3) Societal responsibility

3 Concepts of Social Responsibility

Green marketing

marketing efforts to produce, promote, and reclaim environmentally sensitive products

Cause marketing

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

GDP, unemployment, and price changes

Economic indicators

Gross income

total amount of money made in one year by a person, household, or family unit

Disposable income

the money a consumer has left after paying taxes to use for necessities such as food, clothing, and transportation

Discretionary income

the money that remains after paying taxes and necessities typically used for luxury items

pure competition , monopolistic competition, oligopoly, and pure monopoly

Forms of Competition

immediate competitors, potential entrants, substitutes, suppliers, buyers

Porter's 5-Force Model of Competitive Analysis

Business cultures

comprise the effective rules of the game, the boundaries between competitive and unethical behavior, the codes of conduct in business dealings

Caveat Empor

let the buyer beware

Triple bottom line

recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable long term growth

Sustainable development

involves conducting business in a way that protects the natural environment while making economic progress

barriers to entry

Business practices or conditions that make it difficult for new firms to enter the market (ex: high startup costs)

big data

Extremely large data sets that require massive data storage warehouses and sophisticated data analysis to identify patterns, trends, and associations for decision-making in marketing.

electronic commerce

The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services.

Generation Z

The post-millennial generation, which includes consumers born between 1997 and 2010.

marketing analytics

The study of data to evaluate the performance of marketing activities in numerical terms, which are also called metrics.

Multicultural marketing

Marketing approaches that reflect the unique attitudes, ancestry, communication preferences, and life styles of diverse races and ethnic groups.

Social media

Consists of digital technologies that facilitate the creation and sharing of user-generated content—text, photos, video, and animation (games) —- through virtual communities and social networks.

Value consciousness

The concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior.