Chapter 2: The Marketing Environment, Social Responsibility, and Ethics

Question 1

Target market

Answer 1

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 2

External marketing environment

Answer 2

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.

Question 3

Competition Bureau

Answer 3

The federal department charged with administering most marketplace laws.

Question 4

Self-regulation

Answer 4

Programs voluntarily adopted by business groups to regulate the activities of their members.

Question 5

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

Discretionary income

Answer 6

The amount of money people have to spend on nonessential items.

Question 7

Inflation

Answer 7

A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year.

Question 8

Recession

Answer 8

A period of economic activity characterized by negative growth, which reduces demand for goods and services.

Question 9

Environmental factors

Answer 9

Noncontrollable factors caused by natural disasters, which negatively or positively affect organizations.

Question 10

Competitive factors that affect marketing

Answer 10

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).

Question 11

Component lifestyles

Answer 11

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.

Question 12

Demography

Answer 12

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

Question 13

Generation Z

Answer 13

People born between 1995 and 2009

Question 14

Generation Y

Answer 14

People born between 1979 and 2000

Question 15

Generation X

Answer 15

People born between 1966 and 1978

Question 16

Baby boomers

Answer 16

People born between 1947 and 1965

Question 17

Multiculturalism

Answer 17

Refers to the peaceful and equitable coexistence of different cultures, rather than one natural culture, in a country.

Question 18

Basic research

Answer 18

Pure research that aims to conform an existing theory or to learn more about a concept or phenomenon.

Question 19

Applied research

Answer 19

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

Question 20

Corporate social responsibility

Answer 20

A business’s concern for society’s welfare.

Question 21

Triple bottom line

Answer 21

A business philosophy seems as the pursuit of profit while also benefiting society and the environment. Think of profit, people, and planet.

Question 22

Social acceleration

Answer 22

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.

Question 23

Pyramid of corporate social responsibility

Answer 23

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.

Question 24

Green marketing

Answer 24

The development and marketing of products designed to minimize negative effects on the physical environment.

Question 25

Ethics

Answer 25

The moral principles or values that generally govern the conduct of an individual or group.

Question 26

Morals

Answer 26

The rules people develop as a result of cultural values and norms.

Question 27

Code of ethics

Answer 27

A guideline to help marketing managers and other employees make better decisions.