ch5 analyzing the marketing environment

The Internet of Things is used when

firms connect home devices to a customer's smartphone.

Which of the following is the generational cohort that consists of people born between 1965 and 1976?

generation X

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

generational cohort

Starbucks announced that it would eliminate plastic straws by 2020. This decision by Starbucks is an example of

green marketing

Firms that disingenuously market products as environmentally friendly with the goal of gaining public approval and sales, rather than actually improving the environment, are guilty of

greenwashing

Which term refers to a situation in which a company uses more resources advertising green products than it actually spends on environmentally sound practices?

greenwashing

When a firm evaluates how other companies react to the firm's marketing activities, it is attempting to understand what aspect of the immediate environment?

its competitors

Netflix uses ________ analytics to suggest which movies we should watch as well as to develop new content that it is confident we will like.

predictive

income

purchasing power is tied to income - marketing opportunities exist across the broad range of income distribution

_________ are increasingly performing work, like filling orders, that humans used to do.

robots

The International Fairtrade Certification Mark is granted to products that do which of the following?

- improve environmental standards for producers - promote sustainable farming

What are possible reasons for the increase in wealthy families?

- increase in dual-income households - aging of the general population

political legal environment

Comprises political parties, government organizations, and legislation and laws firms must understand and comply with legislation regarding: - fair competition - consumer protection - industry specific regulation

CDSTEP

Cultural, Demographic, Social, Technological, Economic, and Political forces

technological advances

Technology has impacted every aspect of marketing: - New products - New forms of communication - New retail channels Growing importance of mobile devices New cutting-edge tech: - AI - robotics - internet of things (IoT)

Which 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.

health and wellness

child and adult obesity - new markets focused on healthy living - mobile apps that support health and wellness

regional culture

for national and global chains, particularly important to cater to regional preferences - mcdonalds - slightly different variations of staple menu

Changes in the value of the euro in relation to the dollar over time is an example of

foreign currency fluctuation

________, also known as Millennials, constitutes more than 60 million members in the United States alone and were born between 1977 and 2000.

gen Y

Individuals born between the years 2001 and 2014 are called

gen Z

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

generational

Consumer desires for environmentally friendly products and services has led to ______ marketing.

green

Although the trend of wealthy households outpacing both poor and middle classes is worldwide, it is particularly prominent in

the united states

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

Which items could be included in the Internet of Things?

washers and dryers refrigerators coffee machines

What are possible reasons for the increase in wealthy families?

- Aging of the general population - Increase in dual-income households

Which are traits that best describe Baby Boomers?

- born btwn 1946-1964 - largest pop of consumers 50 or older

what are the components of the immediate environment

- company capabilities - companys competitors - corporate partners - physical environment

What are some characteristics of Generation X?

- considered latchkey children - represent 41 million americans - born btwn 1965-1976

Why are marketers embracing gender neutrality?

- customers cannot be pigeonholed according to gender - gender roles are not longer as distinct as they once were

efficient utilization and distribution of food

- diet regulated products - reducing hunger - reducing food waste

Which demographic factors can help predict consumer buying patterns?

- education attained - income earned

responding to the environment

- implement strategies that respond to multiple environmental forces - marketers that succeed are the ones that respond quickly, accurately, and sensitively to consumers

ethnicity

by 2050, minorities will represent 50% of the population - nearly 23% will be hispanic

What are current trends in food marketing and distribution?

- opening grocery stores in food deserts - reducing food waste

country culture

- subtler aspects can be difficult to navigate - sometimes best answer is to establish universal appeal within specific identities of country culture

company capabilities

- success marketing firms focus on satisfying customer needs that match their core competencies

social trends

- sustainability - health and wellness - efficient utilization and distribution of food

Which law was passed to prohibit monopolies and other activities that would restrain trade or competition?

1890 Sherman Antitrust Act

When were Millennials born?

1977-2000

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

50k

food deserts

Areas where it is difficult to find affordable, healthy food options. More common in highly populated low-income urban neighborhoods where there are fewer grocery stores/transportation options to seek out other food choices. Contribute to obesity in these areas bc people resort to buying cheap, highly caloric foods

Which scenario is the most likely result of inflation? A) Consumers will purchase more products overall. B) Consumers will switch from lower-priced brands to more expensive ones. C) Consumers will buy more discretionary items. D) Consumers will switch to less expensive options for necessities. E) Consumers will stop buying low-cost luxury items.

D

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

False

Which is the largest generational cohort since the Baby Boomers?

Gen Y

What are Digital Natives also called?

Generation Z

________ occurs when a company markets products as environmentally friendly to boost sales but does not actually have the goal of improving the environment.

Greenwashing

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

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

sustainability

UN sustainable development goals focus on social issues for basic needs - certifications from various agencies may be important

members of generation _______ have never known a time without the Internet and electronic gadgets.

Z

economic situations

affects the way consumers buy products and services and spend money - monitor the economic situation in home country or abroad major factors to monitor: - inflation - foreign currency fluctuations - interest rates privacy concerns

Generational cohorts corresponds to which demographic that is typically used to identify consumer markets?

age

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

Firms that use ________ rely on computer systems to perform tasks such as speech recognition, decision making, or translations.

artificial intelligence

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?

asians hispanics african americans

Which of the following are among the major macroenvironmental factors? (Choose every correct answer.) a) Corporate partners b) Cultural factors c) Political/legal (regulatory) factors d) Competitive factors e) Social factors

b, c, e

After World War II, the birthrate in the United States rose sharply, resulting in a group known as

baby boomers

Now that the oldest ________ are collecting Social Security, it is clear that this cohort will be the largest population of 50-plus consumers the United States has ever seen.

baby boomers

Which generational cohort was born between 1946 and 1964?

baby boomers

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

company, competitors and corporate partners

A successful firm focuses on matching its core ______ to what customers need and want.

competencies

In all marketing efforts, the ______ is at the center

consumer

General Motors engages in partnerships with its suppliers, component part makers, unions, transport companies, and dealerships—collectively known as its

corporate partners

When Disney and other global firms produce advertising where the pictures and ad copy stay the same—only the language changes, this is an example of an appeal to the same target market based on different

country cultures

Broadly defined, ________ is (are) the shared meanings, beliefs, morals, values, and customs of a group of people.

culture

macroenvironmental factors

culture, demographics, social, technology, economic, political/legal

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

decline

culture

defined as shared meanings, beliefs, morals, values, and customs of a group of ppl transmitted by words, literature and institutions

a food ________ refers to an area or neighborhood where there is limited or no access to healthy, affordable fresh food options.

desert

When combined with data such as occupation and income, which demographic gives marketers a pretty accurate prediction of purchase behavior?

education

When Whole Foods opened a store in the Englewood neighborhood of Chicago—an area that suffers from vacant buildings and a high crime rate—it charged lower prices on certain staple foods, including eggs and dairy, as part of its effort to

eliminate food deserts

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

existing

Advertising guidelines stating that companies cannot link unhealthy foods with cartoon and celebrity figures pertain to which social trend?

health and wellness concerns

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

highest-income groups

Which group of consumers in the United States has an increasing influence on mainstream U.S. culture with buying power that was projected to reach $1.3 trillion in 2015?

hispanic

Which framework for analysis is comprised of a company's capabilities, competitors, corporate partners, and the physical environment?

immediate environement

New advertising guidelines require marketers to produce food

in reasonably portioned sizes

______ refers to an increase in the prices of goods and services and a decline in purchasing power. Multiple choice question.

inflation

he cost of borrowing money is measured by

interest rates

consumers

is (are) at the center of the marketing environment.

competitors

knows their strengths, weaknesses and likely reactions to firms marketing activities

What are some components of a country's culture?

language differences and food preferences

The political/legal environment consists of which of the following?

laws and legislation political parties

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

luxury cars

Culture, demographics, social issues, technological advances, economic situations, and the political/legal environment are all factors that make up which framework of analysis?

macro-environmental factors

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

macroenvironment

gender

male/female roles are shifting - marketing has changed to reflect these shifts - firms may need to be careful about gender neutrality in positioning their products

Which cohort represents the widest age range, ranging from teenagers to young adults with children?

millenials

Which generation consists mostly of the children of Baby Boomers?

millenials

By the year 2055, which group is expected to remain an ethnic minority in the United States?

no single group

What is a macroenvironmental factor included in the CDSTEP acronym?

political/legal environment

education

related to income, which determines spending power

The ability of marketers to use mobile applications to target and reach their customers more effectively is an example of which macroenvironmental factor?

technological advances

In the immediate environment, what is the first factor that affects the consumer?

the company itself