Chapter 2

Question 1

External marketing management

Answer 1

key external force - evolution of the target market

they must shape and reshape constantly to always meet the needs of the changing target market

Question 2

External factors that could be influencers

Answer 2

CREST

Competitive factors
Regulatory factors
economic factors 
social factors 
technological factors

Question 3

Competitive Factors

Answer 3

Direct, 
substitute, 
new entrants, 
suppliers, 
buyers

Question 4

Regulatory Factors

Answer 4

Understanding laws and regulations as well as tracking them and predicting them

sense upcoming trends can limit government regulation

Question 5

Different regulatory factors

Answer 5

Privacy act
PIPEDIA
Canadian Anti-spam legislation

Question 6

Economic factors

Answer 6

Purchasing power
Inflation
Recession
Consumer Income,

Question 7

Consumer Income

Answer 7

Education is primary for earning potential

income is key element to make target market decisions

Geography and digital footprint can make it confusing to try to reach consumers

Question 8

Purchasing Power

Answer 8

Purchasing Power = income - cost of living

Discretionary income = income is bigger than cost of living

Higher discretionary, the higher the purchasing power

Question 9

Inflation

Answer 9

Pressures consumers to make economical purchases to keep standard of living

If salaries increases don’t keep up with inflation

Marketers must analyze the inflation but still entice people to buy

Question 10

Recession

Answer 10

economic activity characterized by negative growth

Question 11

What social factors influence customers

Answer 11

Demographics - age, gender, ethnicity, location
Values -
Lifestyles
needs being demand

Question 12

Market oriented values

Answer 12

enduring belief

Question 13

Component lifestyles

Answer 13

our way of living can influence our buying habits

Question 14

Family influence factor

Answer 14

makeup of Canadian family has changed

Question 15

Social acceleration

Answer 15

increased regulations to protect people and the planet

Question 16

Corporate social responsibility order

Answer 16

social Needs
competition to serve needs 
tech innovation 
economic peaks and valleys 
requiring regulation

Question 17

Ethics

Answer 17

behaviour by which conduct is judged

Question 18

Morals

Answer 18

rules put in place by cultural norms and values

Question 19

Ethnical development

Answer 19

Pre conventional morality
conventional morality
postconventional morality

Question 20

Code of ethics

Answer 20

guideline to help marketing managers and others make better decisions

Question 21

How is code of ethics beneficial

Answer 21

effective internal control on behaviour

helps employees decide whether what they are doing in ethical

Question 22

Pyramid of corporate social responsibility

Answer 22

economic responsibility
legal responsibility
ethical responsibility
philantrophic