MKTG Chapter 3: Scanning the Marketing Environment

consumerism

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

madrid protocol

a treaty that facilitates the protection of US trademark rights throughout the world

baby boomers

born between 1946-1964

generation X

born between 1965-1976

barriers to entry

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

regulation

consists of restrictions state and federal laws place on business with regard to the conduct of its activities

sherman antitrust act

- 1890 - lobbying by farmers in the midwest against fixed railroad shipping prices led to the passage of this act which forbids: ==> contracts, combinations, or conspiracies in restraint of the trade ==> actual monopolies or attempts to monopolize any part of trade or commerce

clayton act

- 1914 - forbids certain actions that are likely to lessen competition although no harm has actually occurred

robinson patman act

- 1936 - this act makes it unlawful to discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly

lanham act

- 1946 - provides for registration of a company's trademark - provides important advantages to a trademark owner that has used the trademark in interstate or foreign commerce, but it does not confer ownership

digital millennium copyright act

- 1998 - improve protection of copyrighted digital products

federal trade commission

- FTC Act of 1914 - concerned with the deceptive or misleading advertising and unfair business practices and has the power to ==> issue cease and desist orders ==> order corrective advertising

oligopoly

- a few companies control the majority of sales - apple, Samsung, google, Microsoft

tying arrangement

- a seller requires the purchaser of one product to also buy another item in the line

exclusive territorial distributorships

- a third distribution issue often under regulatory scrutiny - a manufacturer grants a distributor the sole rights to sell a product in a specific geographical area

exclusive dealing

- an arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors - illegal when it substantially lessens competition

self regulation

- an industry attempts to police itself - 2 problems... non compliance by members and enforcement

marketspace

- an information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings

electronic commerce

- any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of products and services

multicultural marketing

- combinations of marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races

demographics

- describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation

components of competition

- entry - power of buyers and suppliers - existing competitors and substitutes

metropolitan statistical area

- has an urbanized area of 50,000 or more people and adjacent territory with social and economic integration

micropolitan statistical area

- has urban cluster of 10,000-50,000 people with adjacent territory with social and economic integration

social forces

- include the demographics characteristics of the population and its culture

culture

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

intranet

- internet based network used within an organization

extranet

- internet based technology that a company uses with its suppliers, distributors, and other partners

technology

- inventions or innovations from applied science or engineering research

pure competition

- many sellers and similar product - t shirts, wheat, rice, grain

monopolistic competition

- many sellers compete with substitutable products within a price range - if coffee cost too much, consumers will switch to tea

pure monopoly

- one firm controls the market

blended family

- one formed by merging two previously separated units into a single household

economy

- pertains to the income, expenditures, and resources that affect the cost of running a business and household

environmental scanning

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

competition

- refers to the alternative firms that could provide a product to satisfy a specific market's needs

requirement contracts

- require a buyer to purchase all or part of its needs for a product from one seller for a time period

disposable income

- the money a person has left after paying taxes to use for necessities such as food, clothing, shelter, and transportation

discretionary income

- the money that remains after paying for taxes and necessities.... money used for luxury items - difficult to determine what is luxury and what is necessity

gross income

- total amount of money made in one year by a person, household, or family unit

5 categories of environmental scanning

1) social 2) economic 3) technological 4) competitive 5) regulatory

generation y/millennials

1977-1994