Chapter 2 - Marketing Environment Flashcards
(26 cards)
environmental scan
The process of continually acquiring information on events occurring outside an organization to identify trends, opportunities, and threats to a business
SWOT analysis
The assessment of how well an organization or brand is servicing its businesses and target markets by evaluating its internal strengths and weaknesses, and its external opportunities and threats.
demographics
The statistical data on a population according to characteristics such as gender, age, ethnicity, income, education, and occupation.
What factors do you look at when you perform an environmental scan?
- demographic forces
- socio-cultural forces
- economic forces
- technological forces
- competitive forces, and
- regulatory forces
socio-cultural forces
Cultural values, ideas, and attitudes, as well as society’s morals and beliefs.
showrooming
Using mobile devices in-store to check online competitive product reviews and prices, which results in the online purchase of a cheaper product.
binge viewing
Watching complete or partial seasons of TV shows over a few days
social TV
Watching TV programming while adding comments on social networks.
economy
The collective income, expenditures, and resources that affect the cost of running a business or a household
macroeconomic forces
The state of a country’s economy as a whole as indicated by its growth rates, inflation rates, unemployment rates, and consumer confidence indexes
gross domestic product (GDP
The total dollar value of all goods and services produced in a country within a specified time period
inflation
When the cost to produce and buy products and services gets higher as prices rise.
recession
A time of slow economic activity with two consecutive periods of negative growth.
interest rates
The amount charged as a fee for borrowing money, normally expressed as a per- centage per year.
unemployment rate
Measures the share of the labour force that is not working.
microeconomic forces
The supply and demand of goods and services and how this is impacted by indi- vidual, household, and company decisions to purchase.
gross income
Total amount of money made in one year by a person, household, or family unit, including taxes.
disposable income
Balance of income left after paying taxes; income that is used for spending and savings.
discretionary income
Money that consumers have left after paying taxes and buying necessities.
technological forces
Inventions from sci- ence or engineering research.
competitive forces
Alternative products that can satisfy a spe- cific market’s needs.
direct competitor
Similar products sold in the same category.
indirect competitors
Products competing for the same buying dollar in a slightly different but related category.
monopoly
When only one company sells in a particular market.
