Marketing Exam 2

**environmental scanning**

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

social, technology, competitive, economic, regulatory

5 sources of environmental forces

**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.

population profile, description of generational cohorts, description of racial diversity

3 key **demographics characteristics**

7\.6 billion

how many people now

9\.9 billion

how many people by 2050

Africa and asia

which two continents are mainly experiencing population explosion?

China

current largest population country

India

which country is predicted to have the largest populationin 2050

larger, older and more diverse

three population trends in u.s.

**baby boomers**

Includes the generation of 76 million children born between 1946 and 1964.

**baby boomers**

which generation must they focus health, fitness, financial planning and appearance

**Generation X**

Includes the 55 million people born between 1965 and 1980

**Generation X**

Also called the *baby bust.*

Generation X

generation of self-reliant, supportive of racial diversity and more educated

Generation x

generation not prone to extravagance

Generation x

generation pursues lifestyles that are blend of caution, pragmatism and traditionalism

Generation x

generation on the internet more than any other

Generation x

generation become the largest segment of business travelers

**Generation Y**

Includes the 62 million Americans born between 1981 and 1996

**Generation Y**

Also called the *echo-boom*.

**Generation Y**

generation exerts influence on music, sports, computers, games and all forms of comm

**Generation Y**

generation interested in distinctive, memorable and personal experiences

**Generation Y**

generation adept to focus on work life balance

**Generation Y**

generation that is strong-willed, passionate about the environment and optimistic

**Generation Y**

also called millennials

**Generation Y**

largest living generation

**Generation Z**

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

**Generation Z**

generation where values were formed by Great Recession, ISIS, Sandy Hook, marriage equality, 1st black president and growing interest in populism

**Generation Z**

generation that is hardworking, financially responsible and independent multitaskers

**Generation Z**

generation prefers a natural look, discover and learn online

**multicultural marketing**

Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.

**culture**

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

true

true or false. one of the most notable cultural changes in the us in the past 30 years has been the attitudes and roles of men and women in the work place

**economy**

Pertains to the income, expenditures, and resources that affect the cost of running a business and household.

macro and micro

two aspects of economic forces

GDP, unemployment and price changes

what is the macro level based on (3)

inflation, deflation

what are the two things involved in price changes

inflation

in a ______ economy, the cost to produce and buy products escalates as prices increase

rise, decreases

if prices ___ __faster than consumer incomes, the number of items consumers can buy__ ___

recessions

periods of declining economic activity

consumer income

what are microeconomic trends in terms of

gross, disposable and discretionary

three types of income

**gross income**

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

**gross income**

Also known as *money income* at the Census Bureau.

**disposable income**

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

**discretionary income**

the money that remains after paying for taxes and necessities.

**technology**

Inventions or innovations from applied science or engineering research.

products and companies

each new wave of tech innovation can replace what two things

true

t/f. cost of tech is plummeting

false

t/f. the customer value assement of tech-based products is not focused on quality, service and relationships

**marketspace**

An information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digital offerings.

**electronic commerce**

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

**electronic commerce**

Also called *e-commerce*.

intranets

to comm within the org

extranets

to communicate with suppliers, distributors and other partners

**Internet of Things**

The network of products embedded with connectivity-enabled electronics.

**competition**

The alternative firms that could provide a product to satisfy a specific market’s needs.

prue, monopolistic, oligopoly and pure

4 basic forms of competition

pure competition

competition where ther are many sellers and each has a similar product

pure competition

competition where commodities use

monopolistic competition

competition where many sellers compete with substitutable products within a price range

monopolistic competition

coupons or sales are frequently used marketing tactics in this competition

oligopoly

competition occurs when a few companies control the majority of industry sales

oligopoly

a common industry structure

true

t/f. in oligopolies, there are few sellers, price competition among firms is not desirable becuase it leads to reduced profits for all producers

pure monopoly

competition occurs when only one firm sells the product

pure monopoly

competition where its essential to a community, water, electricity and cable

pure monopoly

in what competition is marketing seldom used

small businesses

what makes up the majority of the competitive landscape for most businesses

**regulation**

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

Sherman Antitrust Act

law that was lobbied by farmers against fixed railroad shipping prices

Sherman Antitrust Act

law forbids contracts, combos or conspiracies in restraint of trade

Sherman Antitrust Act

law that forbids actual monopolies or attempts to monopolize any part of trade or commerce

1890

what year was the Sherman Antitrust Act

Clayton Act

law supplemented the Sherman Antitrust Act

Clayton Act

law forbids certain actions that are likely to lessen compeition, although no actual harm has yet occurred

1914

year of Clayton Act

Robinson Patman Act

law made it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help create a monopoly

1936

year of the Robinson Patman Act

patent law

law gives inventors the right to exclude others from making, using or selling productrs that infringe the invention

copyright law

law gives the author of a literary, dramatic, musical or artistic work the exclusive right to print, perform or otherwise copy that work

copyright

what is secured auto when the work is created

**consumerism**

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

FTC Act of 1914

what act est. the FTC to monitor unfair business practices

FTC

____ has the power to issue cease and desist order and order corrective advertising

**self-regulation**

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

noncompliance and enforcement

what are the two problems with self-regulation

Better Business Bureau

best known self regulatory group

**ethics**

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

culture

serves as a socializing force that dictates what is morally right and just

false

t/f moral standards are not relative to particular societies

business culture

affects ethical conduct both in the exchange relationship between sellers and buyers and in the competitive behavior among sellers

**caveat emptor**

The legal concept of “let the buyer beware” that was pervasive in the American business culture prior to the 1960s.

**Consumer Bill of Rights**

An outline presented by President John F. Kennedy in 1962 that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.

economic espionage and corruption

two kinds of unethical behavior most common in business

**economic espionage**

The clandestine collection of trade secrets or proprietary information about a company’s competitors.

corruption

involves unethical conduct by a person entrusted with a position of authority

corruption

most common in b to b and gov. marketing rather than consumer marketing