MKTG ch 3
what are generational marketing programs
targeted to specific groups within the marketplace by marketers
The two most popular surveys of consumer expectations are
the Consumer Confidence Index: conducted by a nonprofit business research organization called the Conference Board the Index of Consumer Sentiment (ICS): conducted by the Survey Research Center at the University of Michigan
what is the competition force
the alternative firms that could provide a product to satisfy a specific market's needs
what is value consciousness
the concern for obtaining the best quality, features, and performance of a product or service for a given price—is driving consumption behavior for many products at all price levels
Trademarks are intended to protect both who:
the firm selling a trademarked product and the consumer buying it
what is the economy force
the income, expenditures, and resources that affect the cost of running a business and household
what is disposable income
the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
what is discretionary income
the money that remains after paying for taxes and necessities luxury items
what is environmental scanning
the process of continually acquiring information on events occurring outside the organization to identify and interpret potential trend
what is culture
the set of values, ideas, and attitudes that are learned and shared among the members of a group
who are millennials
the younger members of generation y born since 1994
what do these surveys do
track the responses of consumers to specific questions about their expectations, and the results are reported once each month
the number of people 65 years and older is expected to more than what in the coming decades and reach what by 2050
triple 1.5 billion
what state declined in size
vermont
Baby boomers are also called
"sandwich generation" because they balance obligations to parents & their children
african americans spend how much $ per year
$1.1 trillion
hispanics spend how much $ per year
$1.3 trillion
asian americans spend how much $ per year
$770 billion
Sherman Antitrust Act prohibits
(1890) 1. contracts, combinations, or conspiracies in restraint of trade 2. actual monopolies or attempts to monopolize any part of trade or commerce
Clayton Act forbids what
(1914) actions that are likely to lessen competition, although no actual harm has yet occurred
Robinson Patman Act makes it unlawful to what
(1936) discriminate in prices charged to different purchasers of the same product, where the effect may substantially lessen competition or help to create a monopoly.
The Lanham Act does what
(1946) provides for registration of a company's trademarks
who are generation x
(50 million people) born between 1965 and 1976 consumers who are self-reliant, supportive of racial and ethnic diversity, and better educated than any previous generation. They are not prone to extravagance and are likely to pursue lifestyles that are a blend of caution, pragmatism, and traditionalism.
who is generation y
(72 million people) born between 1977 and 1994 influence on music, sports, computers, video games, and all forms of communication and networking
who are baby boomers
(76 million) the generation of children born between 1946 and 1964 wealthiest generation in u.s. history
Some of the most dramatic technological changes occurring now:
-connectivity will grow to include all customers, homes, mobiles, etc to create the "Internet of Things" -computers will develop all 5 senses to create intelligent data collection and personalized predictive capabilities -green technologies will gain popularity -3D technologies will advance to new applications
what is oligopoly
-few companies control majority of industry sales -wireless telephone industry 4 carriers serve more than 95% of u.s. market
what is pure competition
-many sellers -similar product -commodities (agriculture) -elements of marketing has little impact
what is monopolistic competition
-many sellers -substitutable products within a price range -(if price of coffee rises too much, switch to tea) -coupons or sales are used as marketing tactics
what is pure monopoly
-one firm sells the product -goods essential to a community (water, electricity, cable) -small role of marketing b/c its regulated by state or federal gov.
how many active users does facebook have
1.4 billion 1/5 of world population
India's population prediction China's
1.66 billion (largest) 1.31 billion
how many americans are part of a blended family
1/3
how many u.s. residents belong to these racial/ethnic groups: African American, Native American or Alaska Native, Asian American, or Native Hawaiian or Pacific Islander
1/3
households with working fathers and stay at home moms %
10%
world population projections of japan, russia, and germany are declining by
13%
hispanics % of u.s. population
16%
married couples with children %
20%
today, what % of all americans live in rural locations
20%
today, what % of all americans live in central cities
30%
The U.S. Census Bureau estimates that the current population of the United States is approximately
321 million people
the likelihood that a couple will divorce exceeds what %
40%
last year, texas gained more people than any other state with how many people increase
450,000
married couple households %
48%
The 2010 Census allowed respondents to choose more than one of the five race options, and how many people reported more than one race
5 million
today, what % of all americans live in suburbs
50%
the total size of all ethnic groups will grow from 37% to what
50% in 2044
Approximately what % of U.S. households have an annual income between what
54% $25,000-$99,000
how many people are in the world today
7.3 billion
the population is expected to grow to
9.6 billion in 2050
microeconomic trends in terms of consumer income are important because
A consumer's ability to buy is related to income, which consists of gross, disposable, and discretionary components.
what is population explosion
The increases have not occurred worldwide; they are primarily in the developing countries of Africa, Asia, and Latin America
what is gross income
The total amount of money made in one year by a person, household, or family unit
what organization monitors American population
U.S. Census Bureau
what is consumerism
a grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions ecologically safe products and ethical and socially responsible business practices
what are demographics
age, gender, ethnicity, income, and occupation
what is the marketspace
an information- and communication-based electronic exchange environment occupied by sophisticated computer and telecommunication technologies and digital offering
generation x period is known as
baby bust, because the number of children born each year was declining
the term minority is likely to what
become obsolete
from 1930s-2000s, population shifted from
cities to suburbs, THEN suburbs to more remote suburbs called exurbs
what are multicultural marketing programs
combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races
extranets allows companies to do what
communicate with suppliers, distributors, and other partners such as advertising agencies
intranets allow companies to do what
communicate within the organization
The Department of Labor monitors what
consumer expenditures through Consumer Expenditure Survey
During recessions, businesses do what
decrease production, unemployment rises, and many consumers have less money to spend
From a marketing standpoint, if prices rise faster than consumer incomes, the number of items consumers can buy...
decreases
the cost of technology is
decreasing
the social forces of the environment include what
demographic characteristics culture
whats gray divorce
divorce among baby boomers (increasing)
generation y period known as
echo-boom or baby boomlet because it was a time of increased child births that resulted from baby boomers having children
what is precycling
efforts by manufacturers and consumers to avoid creating waste. For manufacturers, this includes decreasing the amount of packaging they use; and for consumers, it means buying products that last longer, avoiding products with excess packaging, and reusing as much as possible
A company can protect its competitive position in new and novel products under the patent law, which gives inventors the right to what
exclude others from making, using, or selling products that infringe the patented invention. The federal copyright law is another way for a company to protect its competitive position in a product
gen x spends more on
food, housing, apparel, and entertainment than other generations
Companies that target boomers will need to respond to their interests in ...
health, fitness, retirement housing, financial planning, and appearance
3 categories of fastest growing household types
households with adult child who moved back home with parents same sex partners unmarried partners
what is the technology force
inventions or innovations from applied science or engineering research. Each new wave of technological innovation can replace existing products and companies.
One of the most notable cultural changes in the United States in the past 30 years has been in the attitudes and roles of
men and women in the marketplace, buying patterns
macroeconomic level concerns
performance of economy based on gdp, unemployment, price changes (inflation deflation)
environmental forces that influence facebook
social forces: communication through mobile phones, photos, group chats, instant messaging economic forces: cost of smartphones & wifi declines, internet access expands, social networking is more affordable technological advances: server speed, data storage, fast & convenient competitive forces: rivalry with google, twitter, snapchat legal forces: trademark & patent rights to facebook
5 sources environmental trends arise from:
social, economic, technological, competitive, and regulatory forces
major regional shift in the u.s. population toward what states is underway
southern & western states
other consumer protection laws
Fair Packaging and Labeling Act (1966) Child Protection Act (1966) Consumer Product Safety Act (1972)
laws relating to food, drugs, and cosmetics include
Infant Formula Act (1980) Nutritional Labeling and Education Act (1990) new labeling requirements for dietary supplements (1997) and trans fats (2006)
what organizations monitor the world population profile
Population Reference Bureau and the United Nations
the Census Bureau has developed a classification system to describe the varying locations of the population, the system consists of two types of statistical areas
metropolitan statistical area: has at least one urbanized area of 50,000 or more people and adjacent territory that has a high degree of social and economic integration micropolitan statistical area: has at least one urban cluster of at least 10,000 but less than 50,000 people and adjacent territory that has a high degree of social and economic integration
Thus, if taxes rise or fall faster than income, consumers are likely to have
more or less disposable income
what's the internet of things
network of products embedded with connectivity-enabled electronics technologies have advanced to allow computer chips to be placed in almost anything and to be connected to a network almost anywhere
what are manufacturers doing to increase coffee consumption after the decline:
new flavors & seasonal blends (S'mores frappuccino), delivery services, supermarkets adding boutiques & gourmet brands.
what states have the fastest population rates
north dakota, texas, utah, wyoming
generally, the population is becoming:
older, larger, diverse
what is blended family
one formed by merging two previously separated units into a single household.
what is electronic commerce
or the activities that use electronic communication in the inventory, promotion, distribution, purchase, and exchange of products and services
Many companies that had a consumer base that was primarily women or primarily men in the past are
preparing for growth from the other gender
the customer value assessment of technology-based products focuses on other dimensions such as
quality, service, and relationships
Periods of declining economic activity are referred to as
recessions
When gross income is adjusted for inflation, however, income of that typical U.S. household was
relatively stable
what is regulation force
restrictions state and federal laws place on business with regard to the conduct of its activities. Regulation exists to protect companies as well as consumers
tea consumption has
risen
in 1900s, population shifted from
rural areas to cities
gen y members are interested in
work life balance, environment, optimism
