Mk 201 Chap 3

Environmental Scanning

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

Social Forces

The demographic and cultural characteristics of the population

Demographics

Describing a population on characteristics such as age, gender, ethnicity, income, and occupation

Culture

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

Race

Social construct categorizing people based on physical characteristics such as skin color, hair texture, eye shape, and facial features

Ethnicity

A shared cultural, social, or ancestral heritage

Multiculturing Marketing

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

Economy

Income, expenditures, and resources that affect the cost of running a business and household

Gross Income

The total amount of money made in one year by a person or household

Disposable Income

The money a consumer has left after paying taxes is used for necessities such as food, housing, clothing, and transportation

Discretionary Income

The money a consumer has left after paying for taxes and necessities to put towards savings and to purchase luxuries

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 telecommunication technologies and digital offerings

Electronic Commerce (E-Commerce)

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

Competition

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

Regulation

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

Sherman Antitrust Act

1890

Forbids contracts, combinations, or conspiracies in restraint of trade and actual monopolies or attempts to monopolize any part of trade of commerce

Clayton Act

1914

Forbids actions that are likely to lessen competition, although no actual harm has yet occurred

Robinson-Patman Act (1936)

Makes it unlawful to charge different prices to different purchasers of the same product, where the effect may substantially lessen competition or help create a monopoly

Patent Law

Provides protection for inventions and processes

Copyright Law

Provides protection for literary, dramatic, musical, or artistic work

Patent

Legal protection granted by a government to creators of new, useful inventions or processes

Provide the patent holder the exclusive right to make, use, sell, and license their invention or process

Usually lasts for 20 years

Copyright

Legal protection is granted to the creators of original literary, artistic, musical, and other intellectual works

Gives the copyright holder the exclusive right to reproduce, distribute, perform, and display their work

Typically lasts for the creator’s lifetime plus 70 years

Copyright is secured automatically when the work is created

Digital Millennium Copyright Act

Extends protection of copyrighted digital products

Trademark

Symbol, word, phrase, or design that distinguishes the products or services of one business from those of others

Serves to protect the brand identify and reputation of a company

Can be renewed indefinitely as long as it is actively used

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

Caveat Emptor

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

Consumerism

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

Consumer Bill of Rights

Codified ethics of exchange between buyer and sellers, including the rights to safety, to be informed, to choose, and to be heard

Economic Espionage

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

Corruption

Unethical conduct by a person entrusted with a position of authority, often to acquire a personal benefit

Corporate Culture

The set of values, ideas, and attitudes that is learned and shared among the members of an organization

Code of Ethics

A formal statement of ethical principles and rules of conduct

Social Responsibility

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

Concepts of Social Responsibility

Profit Responsibility

Stakeholder Responsibility

Societal Responsibility

Triple Bottom Line

The 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 Marketing

The effort to meet global economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs

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

Sustainable Development

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

Moral Idealism

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

Ultitarianism

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