Ch 3 - Analyzing the Marketing Environment

Question 1

competitive intelligence (CI)

Answer 1

used by firms to collect and synthesize information about their position with respect to their rivals; enables companies to anticipate changes in the marketplace rather than merely react to them

Question 2

macroenvironmental factors

Answer 2

aspects of the external environment - culture, demographics, social trends, technological advances, economic situation, and political/legal environment (CDSTEP) - that affect companies

Question 3

culture

Answer 3

the shared meanings, beliefs, morals, values, and customs of a group of people

Question 4

country’s culture

Answer 4

easy-to-spot visible nuances that are particular to a country, such as dress, symbols, ceremonies, language, colors, and food preferences and more subtle aspects, which are trickier to identify

Question 5

demographics

Answer 5

characteristics of human populations and segments, especially those used to identify consumer markets, such as age, gender, income, race, ethnicity, and education

Question 6

generation cohort

Answer 6

group of people of the same generation who typically have similar purchase behaviors because they have shared experiences and are in the same stage of life

Question 7

tweens

Answer 7

generational cohort of people who are not quite teenagers but aren’t young children either; ages 9~12

Question 8

Generation Y/ millennials

Answer 8

generational cohort of people born between 1972 and 1992; biggest cohort since original postwar baby boom

Question 9

generation X

Answer 9

generational cohort of people born between 1966 and 1971

Question 10

baby boomers

Answer 10

generational cohort of people born after WWII until 1965

Question 11

seniors

Answer 11

north america’s fastest-growing generational cohort; people aged 65 and older

Question 12

technological advances

Answer 12

tech changes that have contributed to improvement of the value of both products and services in the past few decades

Question 13

economic situation

Answer 13

economic changes that affect the way consumers buy merchandise and spend money; see inflation, foreign currency fluctuations, interest rates and recession

Question 14

inflation

Answer 14

refers to persistent increase in the prices of goods/services

Question 15

foreign currency fluctatuations

Answer 15

changes in the value of a country’s currency relative to the currency of another country; can influence consumer spending

Question 16

interest rates

Answer 16

represent the cost of borrowing money

Question 17

recession

Answer 17

period of economic downturn when economic growth of country is negative for at least two consecutive quarters

Question 18

political/legal environment

Answer 18

comprises political parties, government organizations, and legislation and laws that promote or inhibit trade and marketing activities

Question 19

green marketing

Answer 19

involves strategic effort by firms to supply customers with environmentally friendly merchandise