Chapter 2 - The Marketing Environment Flashcards
Define baby boomers
Generation of people born between 1946 and 1965.
Define binge viewing
Watching complete or partial seasons of TV shows over a few days.
Define competitive forces
Alternative products that can satisfy a specific market’s needs. It refers to direct and indirect competitors as well as the competitive nature of the market in which they function.
Define demographics
The statistical data on a population according to characteristics such as gender, age, ethnicity, income, education, and occupation.
What is a direct competitor?
a company that produces similar products sold in the same category.
What is discretionary income?
Money that consumers have left after paying taxes and buying necessities.
What is disposable income?
Balance of income left after paying taxes; income that is used for spending and savings.
What is a Do Not Call List (DNCL)?
Gives customers the ability to elect to not receive telemarketing calls on cellphones and landline phones by registering the numbers of their communication devices.
Define economy
The collective income, expenditures, and resources that affect the cost of running a business or a household.
What is an environmental scan?
The process of continually acquiring information on events occurring outside an organization to identify trends, opportunities, and threats to a business.
Define Generation X
People born between 1966 and 1980.
Define Generation Y
People born between 1981 and 2000. This generation is also referred to as millennials.
Define Generation Z
People born in 2001 and beyond.
Define gross domestic product (GDP)
The total dollar value of all goods and services produced in a country within a specified time period.
What is gross income?
Total amount of money made in one year by a person, household, or family unit, including taxes.
What is an indirect competitor?
A company that produces products competing for the same buying dollar in a slightly different but related category.
What is inflation?
When the cost to produce and buy products and services gets higher as prices rise.
Define interest rates
The amount charged as a fee for borrowing money, normally expressed as a percentage per year.
Define Internet of Things (IoT)
The network of products embedded with connectivity-enabled electronics.
Define 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.
Define microeconomic forces
The supply and demand of goods and services and how this is impacted by individual, household, and company decisions to purchase.
What is monopolistic competition?
Type of competition where a large number of sellers compete with each other, offering customers similar or substitute products.
Define monopoly
When only one company sells in a particular market.
Define oligopoly
Type of competition that occurs when a few companies control a market.
