Ch. 3 Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility Flashcards
The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends
Environmental scanning
Social economic technological competitive regulatory forces
Environmental trends typically arise from five sources
Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation
Demographics
Includes the generation of 76 million children born between 1946 and 1964
Baby boomers
Includes the 55 million people born between 1965 and 1980. Also called the baby bust
Generation X
Includes the 62 million Americans born between 1981 and 1996. Also called the echo boom
Generation Y
The post millennial generation, which includes consumers born between 1997 and 2010
Generation Z
Combinations of the marketing mix that reflect the unique attitude, ancestry, communication preferences, and lifestyles of different races
Multicultural marketing
This set of values, ideas, and attitudes that are learned and shared among the members of a group
Culture
Pertains to the income, expenditures, and resources that affect the cost of running a business and household
Economy
The total amount of money made in one year by a person, household, or family unit. Also known as money income at the Census Bureau
Gross income
The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation
Disposable income
The money that remains after paying for taxes and necessities
Discretionary income
Inventions or innovations from applied science or engineering research
Technology
The alternative firms that could provide a product to satisfy a specific markets need
Competition
Restrictions state and federal laws place on a business with regard to the conduct of its activities
Regulation
Why does regulation exist
To protect companies as well as consumers
A grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions
Consumerism
An alternative to government control Where the industry attempts to police itself
Self regulation
The moral principles and values that govern the actions and decisions of an individual or group
Ethics
An outline presented by President John F Kennedy in 1962 that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard
Consumer bill of rights
Two kinds of unethical behavior are most common
(1) Economic espionage and (2) corruption
The clandestine collection of trade secrets or proprietary information about the companies competitors
Economic espionage
Involves an ethical conduct by a person in trusted with a position of authority, often to acquire a personal benefit
Corruption
