Chapt 3

Question 1

What does the marketing environment include?

Answer 1

Microenvironment and Microenvironment

Question 2

What are 6 components in the microenvironment?

Answer 2

Company, Suppliers, Customers, Intermediaries, competitors, and publics

Question 3

What are the 6 different company markets?

Answer 3

consumer, business, reseller, government, and international

Question 4

What are the 6 factors of the Macroenvironment?

Answer 4

Demographic environment, economic (interest rates), natural (air quality), technology, political (relation w govern), and Cultural (values).

Question 5

What are key demographic trends?

Answer 5

Changing age structure (pop getting older), changing family structure (no kids), geographic shifts, increased education, and growing ethic and racial diversity.

Question 6

What’s the economic environment?

Answer 6

Factors that influence consumer and business buying patterns.

Question 7

What are the two different types of income?

Answer 7

Disposable and discretionary

Question 8

What’s disposable income?

Answer 8

Gross income (taxes) and the money left after you pay taxes.

Question 9

What’s discretionary income?

Answer 9

Gross income - taxes - necessities. Disposable income left after paying for necessities

Question 10

What is pure/perfect competition?

Answer 10

Numerous sellers, homogenous product, easy entry/exit

Question 11

What is an oligopoly?

Answer 11

Few sellers, powerful and dominating, difficult to enter

Question 12

What is a monopolistic competition?

Answer 12

many sellers, differentiated products

Question 13

What is a monopoly?

Answer 13

one seller

Question 14

What are some federal regulatory agencies?

Answer 14

FTC (federal trade commission)
FDA (Food and drug administration)
FCC (Federal Communications Commission)
EPA (Environmental Protection Agency)

Question 15

What does the legal environment do?

Answer 15

U.S. laws governing businesses ensure that businesses compete fairly with each other and don’t take advantage of consumers.

Question 16

What does the Sherman Act do?

Answer 16

Prohibits conspiracy to reduce competition

Question 17

What does the Federal Trade Commission Act do?

Answer 17

Prohibits unfair methods of competition

Question 18

What does the Robinson - Patman Act do ?

Answer 18

Prohibits most types of price discrimination

Question 19

Why is technology environment important?

Answer 19

Technology is the key to the future. Developments affect marketing, and patent new products.

Question 20

Why is the natural environment important?

Answer 20

Green marketing - supports sustainability
Protecting and enhancing the natural environment while doing business

Question 21

What factors affect the natural environment?

Answer 21

Green marketing - supports sustainability
Government intervention, shortage of raw matetials and high pollution levels

Question 22

What is cause marketing?

Answer 22

A strategy of joining forces with a non-profit organization to tackle a social problem such as: illiteracy, child abuse and breast cancer

Question 23

What are factors of the cultural and social environment?

Answer 23

Time poverty, health and nutrition, economic power, and the changing roles of women

Question 24

What’s a reactive approach to environmental management?

Answer 24

Sit-back and let these changes happen to your business

Question 25

What’s a proactive approach to environmental management?

Answer 25

If you sit back and let these changes happen to your business, you’re going to be behind

Question 26

What are demographic trend examples?

Answer 26

Graying of the population/nursing homes/hospitals
Increase in ethnic population/food/clothing industries

Question 27

What is validity?

Answer 27

Did the research measure what it was intended to measure

Question 28

What is reliability?

Answer 28

Are the research techniques free of errors?