Chapter 2: The Marketing Environment, Social Responsibility, and Ethics Flashcards
Target market
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.
External marketing environment
It consists of competitive, regulatory, economic, social, and technological variables. Marketers can’t control the external environment, but they must understand how it is changing and the effect on the target market.
Competition Bureau
The federal department charged with administering most marketplace laws.
Self-regulation
Programs voluntarily adopted by business groups to regulate the activities of their members.
Purchasing power
A comparison of income versus the relative cost of a set standard of goods and services in different geographic areas.
Discretionary income
The amount of money people have to spend on nonessential items.
Inflation
A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.
Recession
A period of economic activity characterized by negative growth, which reduces demand for goods and services.
Environmental factors
Noncontrollable factors caused by natural disasters, which negatively or positively affect organizations.
Competitive factors that affect marketing
Direct competitors (most closely match their value proposition), substitutes (satisfy similar needs in different ways), new entrants (can emerge from nowhere as startups competing for same market), suppliers (charge as much as they can for said products), and buyers (who want to pay as little as possible).
Component lifestyles
Mode of living that involves choosing goods and services that meet one’s diverse needs and interests rather than conforming to a single, traditional lifestyle.
Demography
The study of people’s vital statistics, such as their age, race, and ethnicity, and location.
Generation Z
People born between 1995 and 2009
Generation Y
People born between 1979 and 2000
Generation X
People born between 1966 and 1978
Baby boomers
People born between 1947 and 1965
Multiculturalism
Refers to the peaceful and equitable coexistence of different cultures, rather than one natural culture, in a country.
Basic research
Pure research that aims to conform an existing theory or to learn more about a concept or phenomenon.
Applied research
An attempt by marketers to use research to develop new or improved products.
Corporate social responsibility
A business’s concern for society’s welfare.
Triple bottom line
A business philosophy seems as the pursuit of profit while also benefiting society and the environment. Think of profit, people, and planet.
Social acceleration
The concept of exponentially rapid growth starting with human desire for improved products, spurring competitive pursuit of market share, driving innovation and technology, resulting in higher standard of living, but with new socio-environmental problems.
Pyramid of corporate social responsibility
A model that suggests corporate social responsibility is composed of economic, legal, ethical, and philanthropic responsibilities and that the firm’s economic performance supports the entire structure.
Green marketing
The development and marketing of products designed to minimize negative effects on the physical environment.
