CH 3 -- Marketing Environment, Ethics and Social Responsibility

Question 1

Environmental Scanning

Answer 1

Process of collecting information about the external marketing environment to identify and interpret potential trends

Question 2

Environmental Management

Answer 2

Attainment of organization objectives by predicting and influencing competitive, political-legal, economic, technological, and social-cultural environments

Question 3

Strategic Alliance

Answer 3

Partnership in which two or more companies combine resources and capital to create competitive advantages in a new market

Question 4

Competitive Environment

Answer 4

Interactive process that occurs in the marketplace among marketers of directly competitive products, markets of products that can be substituted for one another and marketers competing for a the consumer’s purchasing power

Question 5

Monopoly

Answer 5

Market structure in which a single seller dominates trade in a good or service for which buyers can find no close substitutes

Question 6

Antitrust

Answer 6

Laws designed to prevent restraints on trade such as business monopoly

Question 7

Oligopoly

Answer 7

Market structure in which relatively few sellers compete and where high-start up costs form barriers to keep out new competitors

Question 8

Competitive Strategy

Answer 8

Methods through which a firm deals with its competitive environment

Question 9

Time-Based Competition

Answer 9

Strategy of developing and distributing goods and services more quickly than competitors

Question 10

Political-Legal Environment

Answer 10

Component of the marketing environment consisting of laws and their interpretations that require firms to operate under competititve conditions and to protect consumer rights

Question 11

Sherman Anti Trust Act

Answer 11

Prohibits restraint of trade and monopolization;

Identifies a competitive marketing system as a national policy goal

Question 12

Federal Trade Commission Act

Answer 12

Prohibits unfair methods of competition; establishes the FTC,a an administrative agency that investigates business practice and enforces FTC Act

Question 13

North American Free Trade Agreement (NAFTA)

Answer 13

International trade between Canada, Mexico, and the United States designed to facilitate trade by removing tariffs and other trade barriers among the three nations

Question 14

Unemployment

Answer 14

Proportion of the people in the economy actively seeking work that do not have jobs

Question 15

Discretionary Income

Answer 15

Money available to spend after buying necessities such as food, clothing and housing

Question 16

Demarketing

Answer 16

Process of reducing consumer demand for a good or service to a level that a firms can supply

Question 17

Technological Environment

Answer 17

Application to marketing of the knowledge based on discoveries in science, inventions and innovations

Question 18

VoIP (Voice over Internet Protocol)

Answer 18

A phone connection through a personal computer with any type of broadband internet connection

Question 19

Social- Cultural Environment

Answer 19

Component of marketing environment consisting of the relationship between the marketer, society and culture

Question 20

Consumerism

Answer 20

Social force within the environment that aids and protects the consumer by exerting legal, moral, and economic pressures on business and government

Question 21

Consumer Rights

Answer 21

List of legitimate consumer expectations suggested by President John F. Kennedy

Question 22

Marketing Ethics

Answer 22

Marketer’s standards of conduct and moral values

Question 23

Social Responsibility

Answer 23

Marketing philosophies, policies, procedures, and actions that have the enhancement of society’s welfare as a primary objective

Question 24

Green Marketing

Answer 24

Production, promotion and reclamation of environmentally sensitive products