Marketing Chapter 3

Understanding the marketing envrionment, ethical behavior, and social responsibility.

Baby Boomers

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

Barriers to entry

Business practices or conditions that make it difficult for new firms to enter the market.

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.

Caveat emptor

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

Code of ethics

A formal statement of ethical principles and rules of conduct.

Competition

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

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.

Consummerism

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

Culture

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

Demographics

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

Discretionary income

The money that remains after paying for taxes and necessities.

Disposable Income

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

Economic Espinoage

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

Economy

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

Electronic Commerece

The activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services. Also called e-commerce.

Environmental Scanning

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

Ethics

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

Generation X

Includes the 55 million people born between 1965 and 1980. Also called the baby bust.

Generation Y

Includes the 62 million Americans born between 1981 and 1996. Also called the echo-boom.

Generation z

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

Green Marketing

Marketing efforts to produce, promote, and reclaim environmentally sensitive products.

Gross Income

The total amount of money made in one year by a person, household, or family unit. Also known as money income at the Census Bureau.

Internet of Things

The network of products embedded with connectivity-enabled electronics.

Market Space

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

Moral Idealism

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

Multicultural Marketing

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

regulation

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

Self-regulation

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

Social Forces

The demographic characteristics of the population and its culture.

Social responsibility

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

Sustainable Development

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

Sustainable Marketing

The effort to meet today’s (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs.

Technology

Inventions or innovations from applied science or engineering research.

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.

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.

Whistle Blowers

Employees who report unethical or illegal actions of their employers.