Marketing - Chapter 5 (Test #1)

What a components of culture?

1. Customs of a group of people 2. Morals 3. Beliefs

The political/legal environment consists of _____.

1. Political Parties 2. Laws and Legislation

What are current trends in food marketing?

1. Reducing food waste 2. Opening grocery stores in food deserts

What tasks are firms increasingly using AI to complete?

1. Speech recognition 2. Decision Making 3. Translations

What must marketer understand about their competition?

1. Their likely response to marketing activities. 2. Their weaknesses. 3. Their strengths.

Generational Cohort

A group of people of the same generation - typically have similar purchase behaviors because the have shared experiences and are in the same stage of life

Green Marketing

A strategic effort by firms to supply customers with environmentally friendly merchandise

Millennials

A.K.A Generation Y

Digital Native

A.K.A. Generation Z; named this because people in this group were born into a world that already was full of electronic gadgets and digital technologies, such as the internet and social networks

Food Deserts

Areas and neighborhoods in which consumers, usually of lower socioeconomic strata, have limited or no access to healthy, affordable, fresh food options

Macroenvironmental Factors

Aspects of the external environment that affect a company's business, such as the culture, demographics, social trends, technological advances, economic situation, and political/legal environment (CDSTEP)

Foreign Currency Fluctuations

Changes in the value of a country's currency relative to the currency of another country; can influence consumer spending

Political/Legal Environment

Comprises political parties, government organizations, and legislation and laws

_____ is defined as the shared meaning, beliefs, morals, values, and customs of a group of people.

Culture

Greenwashing

Exploiting consumers by disingenuously marketing products or service as environmentally friendly, with the goal of gaining public approval and sales

True/False. Customers generally prefer talking to a salesperson when they need information over searching on the internet.

False

What is the name for a group of individuals who are the same generation?

Generational cohort

Generation X (Gen X)

Generational cohort of people between 1965 and 1976

Baby Boomers

Generational cohort of people born after World War II, between 1946 and 1964

Generation Y (Gen Y)

Generational cohort of people born between 1977 and 2000; biggest cohort since the original postwar baby boom; A.K.A Millennials

Generation Z (Gen Z)

Generational cohort of people born between 2001 and 2014. A.K.A. Digital Native

Demographics

Information about the characteristics of human populations and segments, especially those used to identify consumer markets such as by age, gender, income, and education

Which word best describes the social, political, and technological factors with which marketers interact?

Macro-environment

Which word best describes the social, political, economic, and technological factors with which marketers interact?

Macro-environment

Economic Situation

Macroeconomic factor that affects the way consumers buy merchandise and spend money, both in a marketer's home country and abroad

Inflation

Refers to the persistent increase in the prices of goods and services

Country Culture

Similar to culture in general, but at a country level. Entails easy-to-spot visible nuances that are particular to a country, such a dress, symbols, ceremonies, language, colors, and food preferences, and subtler aspects, which are trickier to identify

Regional Culture

Similar to culture in general, but at a regional level. The influence of the area within a country in which people live

Artificial Intelligence (AI)

Solutions that rely on computer systems to perform tasks that require human intelligence, such as speech recognition, decision making, or translations

Interest Rates

The cost of borrowing money; the cost to the customer or the fee the bank charges those customers for borrowing the money

Physical Environment

The land, the water, the air, and living organisms (flora and fauna)

Culture

The shared meanings, beliefs, moral, values, and customs of a group of people. It is transmitted by words, literature, and institutions and is passed down from generation to generation and learned over time

When developing marketing plans, what should a firm consider about their competition?

Their reactions

Internet of Things (IoT)

When multiple "smart devices" with Internet-connected sensors, such as refrigerators dishwashers, and coffeemakers, combine the data they have collected to help both consumers and companies consume more efficiently

The most important immediate environmental factors that impact consumers are the _____.

company, competitors, and corporate partners

When launching a new clothing line a company must focus most of all on the needs and wants of _____.

consumers

An example of inflation would be when increasing prices cause the purchasing power of the dollar to _____.

decline

Consumer in a generational _____ are a group of people in the same generation who tend to have similar buying behaviors.

demographic

A(n) food _____ refers to an area or neighborhood where there is limited to no access to healthy, affordable, fresh food options.

desert

A company must be able to focus on its _____ competencies as an opportunity to deliver new products to its customers.

existing

_____ refers to an increase in the prices of goods and services and a decline in purchasing power.

inflation

The _____ environment is comprised of political parties, government organizations, and legislation and laws.

political/legal