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
