Assignment: Exercise 3.1 (Practice)

The state of the macroeconomic environment has a significant impact on consumers' willingness and ability to purchase goods and services offered by companies. For example, when the macroeconomic environment in contracting (i.e., in recession), consumers may have difficulty finding jobs and earning money to fund their purchases. On the other hand, when the macroeconomic environment is expanding (i.e., GDP is growing), consumers are typically more confident about their personal finances and more willing to spend on goods and services. The business cycle consists of ________ stages.

4

The legal and regulatory forces in the marketing environment consist primarily of legislation that is enforced by a variety of agencies operating at the federal, state and local levels of government. Regulatory Responsibility: Interstate Transportation Industry Regulatory Agency:__________

InterState Commerce Commission (ICC)

Marketers must continually acquire information about trends, events and societal dynamics occurring in the marketing environment outside of the firm in order to identify and interpret potential positive and negative forces that may impact the firm's marketing strategies. Trends Identified by an Environment Scan: 1. China's emergence as a world leader in manufacturing 2. the development of corporate competitive intelligence departments and their alliances with federal security agencies 3. increased focus on empowering workers to improve performance Environment Force:____________?

Competitive Forces

The legal and regulatory forces in the marketing environment consist primarily of legislation that is enforced by a variety of agencies operating at the federal, state and local levels of government. Regulatory Responsibility: Consumer Products Regulatory Agency:__________

Consumer product Safety Commission (CPSC)

The state of the macroeconomic environment has a significant impact on consumers' willingness and ability to purchase goods and services offered by companies. For example, when the macroeconomic environment in contracting (i.e., in recession), consumers may have difficulty finding jobs and earning money to fund their purchases. On the other hand, when the macroeconomic environment is expanding (i.e., GDP is growing), consumers are typically more confident about their personal finances and more willing to spend on goods and services. During a recession, consumers' buying power normally ________ .

Decreases

The state of the macroeconomic environment has a significant impact on consumers' willingness and ability to purchase goods and services offered by companies. For example, when the macroeconomic environment in contracting (i.e., in recession), consumers may have difficulty finding jobs and earning money to fund their purchases. On the other hand, when the macroeconomic environment is expanding (i.e., GDP is growing), consumers are typically more confident about their personal finances and more willing to spend on goods and services. Unemployment normally ________ during a period of economic prosperity.

Decreases

The state of the macroeconomic environment has a significant impact on consumers' willingness and ability to purchase goods and services offered by companies. For example, when the macroeconomic environment in contracting (i.e., in recession), consumers may have difficulty finding jobs and earning money to fund their purchases. On the other hand, when the macroeconomic environment is expanding (i.e., GDP is growing), consumers are typically more confident about their personal finances and more willing to spend on goods and services. A deep, prolonged period of recession can become a________ characterized by an extremely ________ unemployment rate.

Depression, High

Marketers must continually acquire information about trends, events and societal dynamics occurring in the marketing environment outside of the firm in order to identify and interpret potential positive and negative forces that may impact the firm's marketing strategies. Trends Identified by an Environment Scan: 1. increasing military and humanitarian expenditures related to the war of terrorism 2. the shifting of white collar jobs to offshore locations 3. increase in savings and investment as worker approach retirement Environment Force:____________?

Economic Forces

The legal and regulatory forces in the marketing environment consist primarily of legislation that is enforced by a variety of agencies operating at the federal, state and local levels of government. Regulatory Responsibility: Environmental Issues Regulatory Agency:__________

Environmental Protection Agency (EPA)

The legal and regulatory forces in the marketing environment consist primarily of legislation that is enforced by a variety of agencies operating at the federal, state and local levels of government. Regulatory Responsibility: Interstate Communications Regulatory Agency:__________

Federal Communications Commission (FCC)

The legal and regulatory forces in the marketing environment consist primarily of legislation that is enforced by a variety of agencies operating at the federal, state and local levels of government. Regulatory Responsibility: Business Practices Regulatory Agency:__________

Federal Trade Commission (FTC)

The legal and regulatory forces in the marketing environment consist primarily of legislation that is enforced by a variety of agencies operating at the federal, state and local levels of government. Regulatory Responsibility: Food, Drug, and Cosmetic Industries Regulatory Agency:__________

Food and Drug Administration (FDA)

Marketers must continually acquire information about trends, events and societal dynamics occurring in the marketing environment outside of the firm in order to identify and interpret potential positive and negative forces that may impact the firm's marketing strategies. Trends Identified by an Environment Scan: 1. new legislation relation to digital copyright and intellectual property protection 2. greater concern for privacy and person information collection 3. new legislation on internet taxation, email spam, and domain names Environment Force:____________?

Lega and Regulatory Forces

The state of the macroeconomic environment has a significant impact on consumers' willingness and ability to purchase goods and services offered by companies. For example, when the macroeconomic environment in contracting (i.e., in recession), consumers may have difficulty finding jobs and earning money to fund their purchases. On the other hand, when the macroeconomic environment is expanding (i.e., GDP is growing), consumers are typically more confident about their personal finances and more willing to spend on goods and services. Consumers' attitudes towards prices will vary depending on the state of the macroeconomic environment. For example, during a recession, consumers tend to be ________ price conscious. On the other hand, during a period of prosperity, consumers tend to be ________ price conscious.

More, Less

The state of the macroeconomic environment has a significant impact on consumers' willingness and ability to purchase goods and services offered by companies. For example, when the macroeconomic environment in contracting (i.e., in recession), consumers may have difficulty finding jobs and earning money to fund their purchases. On the other hand, when the macroeconomic environment is expanding (i.e., GDP is growing), consumers are typically more confident about their personal finances and more willing to spend on goods and services. Throughout most of the 1990's, the United States economy was in the ________ stage of the business cycle.

Prosperity

The state of the macroeconomic environment has a significant impact on consumers' willingness and ability to purchase goods and services offered by companies. For example, when the macroeconomic environment in contracting (i.e., in recession), consumers may have difficulty finding jobs and earning money to fund their purchases. On the other hand, when the macroeconomic environment is expanding (i.e., GDP is growing), consumers are typically more confident about their personal finances and more willing to spend on goods and services. Up until the early part of the 2000's, Japan's economy experienced an extended period of ________ .

Recession

Marketers must continually acquire information about trends, events and societal dynamics occurring in the marketing environment outside of the firm in order to identify and interpret potential positive and negative forces that may impact the firm's marketing strategies. Trends Identified by an Environment Scan: 1. declining differences in gender roles and buying patterns 2. growing diversity of the US population 3. decline in smoking and tobacco use throughout the world Environment Force:____________?

Social Forces

Marketers must continually acquire information about trends, events and societal dynamics occurring in the marketing environment outside of the firm in order to identify and interpret potential positive and negative forces that may impact the firm's marketing strategies. Trends Identified by an Environment Scan: 1. increasing use of wireless broadband technology 2. the dramatic growth of the open source (free) software movement 3. advances in biotechnology, cosmetic surgery, and cancer drugs Environment Force:____________?

Technological Forces

The technological environment represents the application to marketing of knowledge based on discoveries in science, inventions, and innovations. Technology leads to new goods and services for consumers; it also improves existing products, offers better customer service, and often reduces prices through new, cost-efficient production and distribution methods. Which of the following statements is true about the technological environment? --Information technology has limited the way business firms work and market their products. --Technology has reduced competition in the marketplace for most industries. --Technology always makes things less complex. --The U.S. military primarily develops technology that can be used in combat. --The more technological systems we have, the harder scientists have to work to ensure that the systems are integrated.

The more technological systems we have, the harder scientists have to work to ensure that the systems are integrated.

The marketer cares very much about what people think; how they feel; what they believe; and how they live. Without this knowledge, marketing strategies will be destined for failure. The marketer must stay tuned in to the sociocultural forces in the marketing environment, because these are the forces that will assist the marketer in understanding what people think, how they feel, what they believe, and how they live. Sociocultural Description: The movement's major forces are individual consumer advocates Sociocultural Concept Question:___________?

What is Consumerism?

The marketer cares very much about what people think; how they feel; what they believe; and how they live. Without this knowledge, marketing strategies will be destined for failure. The marketer must stay tuned in to the sociocultural forces in the marketing environment, because these are the forces that will assist the marketer in understanding what people think, how they feel, what they believe, and how they live. Sociocultural Description: Changes in these characteristics have a significant impact on relationships and individual behavior Sociocultural Concept Question:___________?

What is Demographic Characteristics?

The marketer cares very much about what people think; how they feel; what they believe; and how they live. Without this knowledge, marketing strategies will be destined for failure. The marketer must stay tuned in to the sociocultural forces in the marketing environment, because these are the forces that will assist the marketer in understanding what people think, how they feel, what they believe, and how they live. Sociocultural Description: Help establish long term consumer relationships by maintaining and enhancing the natural environment Sociocultural Concept Question:___________?

What is Green Marketing?

The marketer cares very much about what people think; how they feel; what they believe; and how they live. Without this knowledge, marketing strategies will be destined for failure. The marketer must stay tuned in to the sociocultural forces in the marketing environment, because these are the forces that will assist the marketer in understanding what people think, how they feel, what they believe, and how they live. Sociocultural Description: In the last decade, the US experiences the slowest growth rate in this characteristic since the Great Depression Sociocultural Concept Question:___________?

What is the Birthrate?

There is fierce _________ for the limited number of dollars that consumers are willing or able to spend on any purchase.

competition

You work in real estate and have a thriving business until the economic recession hits. Sales immediately plummet as your potential clients decide to slow down because they do not know what's going to happen in the market. Almost a year later, the economy begins to recover, and slowly, consumer purchasing power increases. Though you hope that your clients will come back in droves, this is not the case. Consequently, you are hesitant to spend money on big marketing campaigns to stimulate your business. Which of the following best explains why you, as a marketer, are hesitant to invest in a large-scale marketing campaign during this stage of the business cycle? --consumer spending is at its lowest --consumers are eager to spend and spend outside of their means --consumer demand is uncertain --people still have a lot of bills to pay from the recession --disparities between the rich and poor grow even greater

consumer demand is uncertain

____________________ includes exaggerating packaging contents through subtle design, using misleading labeling or describing size in misleading terms.

deceptive packaging

You work for an automobile manufacturing company whose sales have been low as a result of the economic downturn. Company executives are strategizing as to how to stimulate sales. Which of the following steps should they take to improve business? --increase prices and offer fewer promotions --increase prices and offer more promotions --decrease prices and eliminate promotions --decrease prices and offer more promotions --decrease prices and offer fewer promotions

decrease prices and offer more promotions

Vendors who sell essentially identical products or services are known as a firm's __________.

direct competition

Products that receive the Energy Star credential represent examples of goods that are substituted because they are ________ friendly alternatives.

environmentally

A(n) __________________ is a situation that arises when all alternative choices have been deemed undesirable because of potential negative consequences, making it difficult to distinguish right from wrong.

ethical dilemma

The code of moral principles and values that govern the behaviors of a person or group with respect to what is right or wrong is called ________.

ethics

__________________________ is an organization's obligation to maximize its positive impact and minimize its negative impact on society.

social responsibility

Marketing citizenship is the adoption of a(n) _________ focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by __________________.

strategic, stakeholders

Businesses compete indirectly when they produce goods and services that are _________ for those of another business.

substitutable

Consumers will often substitute products or services that have improved attributes due to___________.

technological advances.