Chapter 2: The Marketing Environment, Social Responsibility and Ethics

Question 1

What is the SWOT analysis matrix?

Answer 1

Strengths and weaknesses -Internal environment

Opportunities and threats - External environment

Question 2

List 5 factors of the external environment (CREST)

Answer 2

1. Competition
2. Regulation
3. Economic
4. Social
5. Technology

Question 3

Name the forces of competition surrounding a company

Answer 3

1. Direct competitors (Competitors that match closely with the same product as the firm)
2. Substitute (competitors product that can satisfy the same need but in different ways)
3. New entrants (new competitors emerging due to entry barriers)
4. Suppliers (business partners like material producers)
5. Buyers (business partners like retailers)

Question 4

Define target market

Answer 4

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges.

Question 5

Define purchasing power

Answer 5

A comparison of income versus the relative cost of a set standard of goods and services in different geographic areas.

Question 6

What are the marketing-oriented values?

Answer 6

• Self-sufficiency
• Upward mobility (success should come to those educated, work hard and play by the rules)
• Work ethic
• Fairness

Question 7

Define Regulations

Answer 7

Laws and rules maintained by authority

Question 8

Define inflation

Answer 8

The measure of the decrease value of money which drives prices higher.

Question 9

Define component lifestyle

Answer 9

Consumers nowadays choose products and services that meet their diverse needs and interests.

Question 10

Define Demography

Answer 10

The study of people’s vital statistics, such as their age, race and ethnicity, and location.

Question 11

Define basic research and applied research

Answer 11

Basic research:
Pure research that aims to confirm an existing theory

Applied research:
An attempt by marketers to use research to develop new or improved products.

Question 12

Gen-Y

Answer 12

1979-2000 Millennials

Question 13

Gen-Z

Answer 13

1995-2009

Question 14

Gen-X

Answer 14

1966-1978

Question 15

Baby-boomers

Answer 15

1947-1965

Question 16

Define Ethical behaviour

Answer 16

Standard of behaviour by which conduct is judged. They are moral principals and values.

Question 17

Define Morals

Answer 17

Rules developed as a result of cultural norms

Question 18

Define corporate social responsibility

Answer 18

A business’s concern for society’s welfare

Question 19

Define the Code of Ethics

Answer 19

A guideline to help marketing managers and others make better decisions.