MKT 340 - Chapter 5

What is the average yearly income for young adults with a bachelor's degree in the United States?

$55,000

Demographics Examples:

1. Age 2. Gender 3. Income 4. Education

What are the possible reasons for the increase in wealthy families? (select all that apply)

1. Aging of the general population 2. Increase in dual-income households

New cutting-edge technologies and considerations:

1. Artificial Intelligence 2. Robotics 3. Internet of Things (IoT) 4. Privacy concern

Which of the following are components of culture? (select all that apply)

1. Beliefs 2. Customs 3. Morals

Immediate Environment:

1. Company 2. Competitors 3. Corporate Partners 4. Physical Environment

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

1. Company capabilities 2. Competitors 3. Physical environment 4. Corporate partners

Which of the following are factors that affect consumers' immediate environment? (select all that apply)

1. Competitors 2. Company capabilities 3. Corporate partners

Macroenvironment (external):

1. Culture 2. Demographics 3. Social 4. Technology 5. Economic 6. Political/Legal

Which of the following services do the robots entering the marketplace provide? (select all that apply)

1. Delivering goods via driverless cars 2. Counting cash 3. Filling orders

Examples of Physical Environment:

1. Energy Trends 2. Pollution control 3. Green Marketing

What are some components of a country's culture? (select all that apply)

1. Food preferences 2. Language differences

Roughly 80% of population growth over the next two decades in the United States is projected to come from a combination of which of the following groups? (select all that apply)

1. Hispanics 2. African Americans 3. Asian Americans

Which of the following demographic factors help predict consumer buying patterns? (select all that apply)

1. Income earned 2. Education attained

The political/legal environment consists of which of the following? (select al that apply).

1. Political parties 2. Laws and legislation

The international Fairtrade Certification Mark is granted to products that do which of the following? (select all that apply)

1. Promote sustainable farming 2. Improve environmental standards for producers

Which items could be included in the Internet of Things? (select all that apply)

1. Refrigerators 2. Washers and dryers 3. Coffee machines

Which tasks are firms increasingly using artificial intelligence (AI) to complete? (select all that apply)

1. Speech recognition 2. Translations 3. Decision making

Examples of Corporate Partners:

1. Supply chain partners 2. Banks 3. Contractors 4. Component part makers

What must marketers understand about their competition? (select all that apply)

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

Which of the following are reasons marketers are increasingly embracing gender neutrality? (select all that apply)

1. There are shifts in status, attitudes, and behaviors of women that affect the way many firms need to design and promote their products and services 2. Gender roles are no longer as distinct as they once were

Which of the following are considered aspects of the physical environment? (select all that apply)

1. Water 2. Land 3. Living organisms

Core Competency:

A defining capability or advantage that distinguishes a company from its competitors. Core competencies are capabilities that make up a competitive advantage. (foundation of a firm's competitive advantage)

Generational Cohort:

A group of people of the same generation - typically have similar purchase behaviors because they 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

Sustainable Competitive Advantage:

An advantage over the competition, not easily copies, and maintained over a long period of time. At the center is the customer. 2 or more preferred

Which type of business would be the most likely to see food sales suffer as a result of inflation and rising costs and consumers' desire to save money?

An upscale steakhouse

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)

Points of Parity (seat at the table):

Attributes that are considered mandatory for a brand/product to be considered a legitimate competitor in its specific category; Attributes that are needed to compete

Points of Difference (Differentiation):

Attributes that make a brand/product unique in its category/competitive space

Macroenvironmental Factors (External):

CDSTEP - 1. Culture 2. Demographics 3. Social 4. Technology 5. Economic 6. Political/Legal Remember OT in SWOT - 1. Opportunities 2. Threats

Foreign Currency Fluctuations:

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

Demographics:

Characteristics of the human population and segments, especially those used to identify consumer markets

Which of these is NOT a macroenvironmental factor that directly influences a firm?

Competition

Political/Legal Environment:

Comprises political parties, government organizations, and legislation and laws.

In all marketing efforts, the ________ is at the center

Consumer

When launching a new clothing line, a company must focus primarily on the needs and wants of _________.

Consumers

A smartphone manufacturer may collaborate with a company that makes lithium-ion batteries to ensure that their phones have the longest possible battery life. The battery maker is considered the smartphone company's _____________ partner.

Corporate

If a car company collaborated with a sheet metal supplier, the car company would be the supplier's _______________.

Corporate partner

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

Culture

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

Decline

Data that indicates the characteristics of human populations and segments is known as _______________.

Demographics

______________ are characteristics of human populations such as gender and race.

Demographics

Regional Culture:

Different beliefs and values of groups of people within different areas of the country, larger national or regional companies, Important to cater to regional preferences

A company must be able to evaluate an attractive opportunity in relation to its _______________ competencies.

Existing

Greenwashing:

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

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

False

Millennials:

Generation Y

Consumers in a ___________ cohort are a group of people in the same generation who tend to have similar buying behaviors

Generational

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

Generational Cohort

Baby Boomers:

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

Generation X (Gen X):

Generational cohort of people born between 1965 - 1980

Generation Y (Gen Y):

Generational cohort of people born between 1981 - 1996; biggest cohort since the original postwar baby boom. Also called millennials

Generation Z (Gen Z):

Generational cohort of people born between 1997 - 2009. Also known as digital Natives 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.

Generation Alpha (Gen a):

Generational cohort of people born between 2010 - 2025

Consumer desires for environmentally friendly products and services has lead to ___________ marketing.

Green

When companies ensure that all packaging has certain symbols, such as the recycle symbol or symbols showing support for wind energy, this is a strategic effort by the company to show that they practice _______________.

Green Marketing

Which income groups' purchasing power is growing relative to other income groups?

Highest-income groups

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

Inflation

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.

From a marketing perspective, focusing on mobile devices accomplishes what?

It makes it more likely that a consumer will spend more at a retailer.

Competition:

Know their: 1. Strengths 2. Weaknesses 3. How they react to marketing activities

Fair competition:

Level the playing field for all

Which goods and services are most likely to suffer a downturn when interest rates rise?

Luxury cars

Economic Situation:

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

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

Macroenvironment

Economic Situation:

Monitor the economic situation in home country and abroad, affects the way consumers buy and spend

Corporate Partners:

Parties/companies that work with your company for greater success. Almost impossible to succeed on your own

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

Political/Legal

Physical Environment (p.e.):

Products and services are influenced by how they are used in p.e. and how they impact p.e., focus on sustainability.

Consumer Protection:

Protecting rights of consumers

Inflation:

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

A national fast-food chain that meets local demand by offering one type of food in one part of the country and an entirely different menu item in another part of the country is an example of catering to _________________ culture.

Regional

_________ culture is exemplified by the ways people within a particular geographic area have different food preferences from people in other areas of the country.

Regional

___________ are increasingly performing work, like filing orders, that humans used to do.

Robots/ robotics/ Machines/ AI

To determine if an opportunity is attractive or unattractive for a firm, marketers can use an analysis of the external and internal environments such as ____________.

SWOT Analysis

Successful marketing departments focus on...

Satisfying customer needs that match their core competencies

Culture:

Shared meanings, beliefs, morals, values, and customs of a group

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 as 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:

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

Country Culture:

Subtler aspects of a culture, can be difficult to navigate, sometimes best answer is to establish universal appeal within country culture (less risky)

Consumers who hesitate to purchase goods because they worry about the potentially low wages paid to workers in the fast fashion industry are expressing _________ concerns.

Sustainability

Technological Advances:

Technology impacts every aspect of marketing

Which statement about the United States is True?

The United States is steadily growing more diverse

At the center of the marketing environment is....

The consumers

Interest Rates:

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

Physical Environment:

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

There is increasing concern that __________ will be depleted though actions such as deforestation.

The physical environment

A company may choose to launch the same advertising campaign globally. This particular campaign may be launched with identical pictures and messages but in different languages. Advertisers might try to bridge the cultural gap by appealing to __________ across countries.

The same target market

Culture:

The shared meanings, beliefs, morals, 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.

What factor should marketers keep in mind about gender when promoting goods and services?

The status and earning power of women have increased in recent decades

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

Their likely reaction

The Internet of _________ occurs when there are numerous "smart devices" that work together to help both consumers and companies consume more efficiently.

Things (Internet of Things / IoT)

True or False - Marketers use mobile devices and apps to improve the consumer experience by offering convenience and information.

True

Sustainability:

UN sustainable development goals focus on social issues for basic needs like food, water, health care, living conditions, etc.

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.

Company:

company capabilities (aka - core competencies). Understanding the customer