Chapter 3

discretionary income

-is used for spending or saving

he growing demand for health-care services, recreation, tourism, retirement housing, and selected skin-care products most closely relates to ______________.

. the demographic characteristic of age

Regulatory Issues in Marketing

1 Truthful Advertising Messages 2 Health and Childhood Obesity 3 Internet Tracking/User Privacy 4 Concern for Vulnerable Populations 5 Failure to Deliver on Expectations and Promises 6 Sustainable Marketing Practices and Greenwashing 7 Transparent Pricing 8 Understandable Labelling and Packaging 9 Supply Chain Relationships/Ethical Sourcing 10 Marketing of Dangerous Products 11 Product Quality Failures 12 Nonresponse to Customer Complaints

Federal Trade Commission (FTC)

An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling

AT&T is an example of

a company that has attempted to influence legislation and regulation over a long period of time

business cycle

a pattern of economic fluctuations that has four stages, prosperity, recession, depression and recovery

Better Business Bureau (BBB)

a system of nongovernmental, independent, local regulatory agencies that are supported by local businesses

marketing managers take two general approaches to environmental forces

accepting them as uncontrollable or attempting to influence and shape them

disposable income

after tax income -is used for spending or saving -ready source of buying power, the total amount available in a nation is important to marketers -

demographic characteristics

age, gender, race, ethnicity, marital and parental status, income, and education—have a significant bearing on relationships and individual behavior. changes in how people live and ultimately in their consumption of such products as food, clothing, housing, transportation, communication, recreation, education, and health services.

income

amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period, such as a month or a year.

Sociocultural forces

are the influences in a society and its culture(s) that bring about changes in people's attitudes, beliefs, norms, customs, and lifestyles.

competition

as other firms that market products that are similar to or can be subsitutited for its product in the same geographic area

Which of the following types of competition are geared to market products with similar features and benefits to the same customers at similar prices?

brand competitors

People are sometimes more willing to buy if they have the ____________

buying power

Proactive organizations often seek to influence the political forces of the environment through _____ and _____

campaign contributions; lobbying

Which of the following is a brand competitor for Dr Pepper?

coke

total budget competitors

compete for the limited financial resources of the same customers ex: competitors for Diet Coke are gum, k a newspaper, bananas

product competitors

compete in the same product class but market products with diff features, benefits and prices ex:The thirsty dieter might purchase iced tea, juice, a sports beverage, or bottled water instead of a soda.

National Advertising Review Board (NARB)

considers cases in which an advertiser challenges issues raised by the NAD about an advertisement.

Mothers Against Unhealthy Fats and Sugars (MAUFS) is sending e-mails to companies, posting on Facebook and Pinterest, lobbying government agencies, running a petition on Change.org, and boycotting companies whose activities they deem irresponsible. This best illustrates _________________.

consumerism

consumer protection legislation

deal with consumer safety, such as food and drug acts and are designed to protect people from actual and potential physical harm caused by adulteration or mislabeling others prohibit the sale of various hazardous products, such as flammable fabrics and toys that may injure children. Others concern automobile safety.

pro competitive legislation

designed to preserve competition ex:sherman antutrust act

_____ is a ready source of buying power.

disposable income

mistake during recession?

drastically reducing their marketing efforts, thus damaging their ability to survive

Whether fluctuating rapidly or slowly, environmental forces are always _____________.

dynamic

environmental forces are always

dynamic and changing

credit

enables people to spend future income now or in the near future.

Which of the following involves observation; secondary sources such as business, trade, government, and general-interest publications; and marketing research?

environmental scanning

the marketing environment consists of

external forces that directly or indirectly influence an organizations acquisition of inputs (human, financial, natural resources and raw materials) and the creation of outputs (goods, services or ideas)

Which of the following is the major source of cultural values?

family

Which of the following regulatory agencies has the greatest influence over marketing activities?

federal trade commission

oligopoly

few competitiors some barriers into the market homogenous or differentiated produce ex: USPS, FedEx, package delivery

monitoring competition

guides marketers in developing competitive advantages and in adjusting current marketing strategies and planning new ones

Green marketing

helps establish long-term consumer relationships by maintaining, supporting, and enhancing the natural environment. ex:Procter & Gamble

recovery

high unemployment begins to decline total disposable income increases economic gloom that reduced consumers willingness to buy subsides

The FTC also assists businesses

in complying with laws and evaluates new marketing methods every year.

willingness to spend

inclination to buy because of expected satisfaction from a product

Consumerism

involves organized efforts by individuals, groups, and organizations to protect consumers' rights.

tech

is the application of knowledge and tools to solve problems and perform tasks more efficiently

Environmental scanning

is the process of collecting information about forces in the marketing environment.

Which of the following is most closely related to the political forces of the marketing environment?

legal and regulatory forces

baby bust

lowest fertility rate ever

culture values

major source is family

monopolistic comp

many competitors few barriers into the market product differentiation, with many subs ex: wrangler, levi, strauss jeans

brand competitors

market products with similar features and benefits to the same customers at similar places ex:diet coke, diet pepsi

Federal regulatory agencies influence many

marketing activities, including product development, pricing, packaging, advertising, personal selling, and distribution.

Which of the following is NOT an example of illegal anticompetitive practices?

mislabeling products

a diverse population means a

more diverse customer base, and marketing practices must be modified—and diversified—to meet its changing needs.

_____ considers cases in which an advertiser challenges issues raised by the NAD about an advertisement.

national advertising Review Board

Which of the following types of competitive structure often exists because of the difficulty and expense of entering a market?

oligopoly

monopoly

one competitor many barriers to entry into the market almost no subs ex: water utilities

sherman antutrust act

prevent businesses from restraining trade and monopolizing markets

Many marketing managers attempt to influence and shape environmental forces. This is known as the

proactive approach

depression

prolonged recession unemployment is extremely high, wages are low, total disposable income is at a minimum and consumer lack confidence

generic competitors

provide very diff products that solve the same problem or satisfy the same basic customer need ex:doeter might just take water instead of soda

ACME Corp. managers view environmental forces as uncontrollable and thus adjust their marketing strategies to changes in the marketing environment. This approach is best described as _____________.

reactive

During which of the following economic conditions does unemployment begin to decline, total disposable income increase, and consumers' willingness to buy begin to rise?

recovery

uncontrollable

remains passive and reactive toward the environment -

buying power

resources such as money, goods and services that can be traded in an exchange

Technology determines how we, as members of society,

satisfy our physiological needs. In various ways and to varying degrees, eating and drinking habits, sleeping patterns, sexual activities, health care, and work performance are all influenced by both existing technology and changes in technology.

Which of the following aspects of technology relates to the fact that technology acts as a catalyst to spur even faster development?

self-sustaining

Examples of illegal anticompetitive practices include

stealing trade secrets or obtaining other confidential information from a competitor's employees, trademark and copyright infringement, price fixing, false advertising, and deceptive selling methods such as "bait and switch" and false representation of products.

At ACME Corp., managers are trying to foresee the effects of new products and processes on their firm's operations, on other business organizations, and on society in general. This is best described as ______________.

technology assessment

environmental analysis

the process of assessing and interpreting the info gathered -helps see if there are any threats

environmental scanning

the process of collecting info about forces int he marketing environment -scanning:observation ex:internet -gives companies and edge over competitors in allowing them to take advantage of Curren trends

prosperity

unemployment is low and total income is relatively high -high buying power

recession

unemployment rises during this, total buying power declines -become more price cautious -department sales drop -shop at off-price places such as marshals or tj max

salesforce

worlds most innovative companies