Chapt 3 Flashcards
What does the marketing environment include?
Microenvironment and Microenvironment
What are 6 components in the microenvironment?
Company, Suppliers, Customers, Intermediaries, competitors, and publics
What are the 6 different company markets?
consumer, business, reseller, government, and international
What are the 6 factors of the Macroenvironment?
Demographic environment, economic (interest rates), natural (air quality), technology, political (relation w govern), and Cultural (values).
What are key demographic trends?
Changing age structure (pop getting older), changing family structure (no kids), geographic shifts, increased education, and growing ethic and racial diversity.
What’s the economic environment?
Factors that influence consumer and business buying patterns.
What are the two different types of income?
Disposable and discretionary
What’s disposable income?
Gross income (taxes) and the money left after you pay taxes.
What’s discretionary income?
Gross income - taxes - necessities. Disposable income left after paying for necessities
What is pure/perfect competition?
Numerous sellers, homogenous product, easy entry/exit
What is an oligopoly?
Few sellers, powerful and dominating, difficult to enter
What is a monopolistic competition?
many sellers, differentiated products
What is a monopoly?
one seller
What are some federal regulatory agencies?
FTC (federal trade commission)
FDA (Food and drug administration)
FCC (Federal Communications Commission)
EPA (Environmental Protection Agency)
What does the legal environment do?
U.S. laws governing businesses ensure that businesses compete fairly with each other and don’t take advantage of consumers.
What does the Sherman Act do?
Prohibits conspiracy to reduce competition
What does the Federal Trade Commission Act do?
Prohibits unfair methods of competition
What does the Robinson - Patman Act do ?
Prohibits most types of price discrimination
Why is technology environment important?
Technology is the key to the future. Developments affect marketing, and patent new products.
Why is the natural environment important?
Green marketing - supports sustainability
Protecting and enhancing the natural environment while doing business
What factors affect the natural environment?
Green marketing - supports sustainability
Government intervention, shortage of raw matetials and high pollution levels
What is cause marketing?
A strategy of joining forces with a non-profit organization to tackle a social problem such as: illiteracy, child abuse and breast cancer
What are factors of the cultural and social environment?
Time poverty, health and nutrition, economic power, and the changing roles of women
What’s a reactive approach to environmental management?
Sit-back and let these changes happen to your business
What’s a proactive approach to environmental management?
If you sit back and let these changes happen to your business, you’re going to be behind
What are demographic trend examples?
Graying of the population/nursing homes/hospitals
Increase in ethnic population/food/clothing industries
What is validity?
Did the research measure what it was intended to measure
What is reliability?
Are the research techniques free of errors?
