Chapter 3 and 4 exam review Flashcards
the process of collecting information about forces in the marketing environment
Environmental Scanning
the process of assessing and interpreting the information gathered through environmental scanning
Environmental Analysis
what are the two approaches to environmental forces
Passive: accept them as uncontrollable proactive: try to shape and influence them
firms that market products with similar features and benefits to the same customers at similar prices
Brand Competitors
Firms that compete in the same product class but market products with different features, benefits, and prices
product competitor
firms that provide very different products that solve the same problem or satisfy the same basic customer need
generic competitors
firms that compete for the limited financial resources of the same customers
Total budget competitors
when an organization offers a product that has no close substitute, making it the sole source of supply
monopoly
when a few sellers control the supply of a large proportion of a product
Oligopoly
when an organization with many competitors develops a marketing strategy to differentiate its product
monopolistic competition
involves a large number of sellers, no one of which influences price or supply
Pure competition
a pattern of economic fluctuations that has four stages
The Business Cycle
the four steps of the business cycle are
prosperity, recession, depression, recovery
unemployment is low and total income is relatively high
Prosperity
unemployment rises and the total buying power declines
Recession
unemployment is very high, wages are very low, total disposable income is at a minimum and consumers lack confidence in the economy
Depression
the economic moves from depression or recession to prosperity
Recovery
resources such as money, goods, and services, that can be traded in an exchange
Buying power
after-tax income
disposable Income
disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, shelter
discretionary income
KNOW WHAT THIS IS
national customer satisfaction index
what kind of force?
1) enactment of legislation
2) legal decisions interpreted by courts through civil and criminal cases
3) influence of regulatory forces
Political Forces
legal and regulatory force;
refers to laws designed to preserve competition
Procompetitive legislation
legal and regulatory forces;
Protects people from harm, prohibits hazardous products, requires information disclosure, aimed at particular marketing activities
Consumer Protection Legislation
Procompetitive legislation, consumer protection legislation, encouraging compliance with laws, regulatory agencies, and self-regulatory forces are all what type of forces
Legal and regulatory forces
most heavily influences marketing activities; curbing inappropriate behavior like false advertising, misleading prices, deceptive packaging and labeling
Federal trade commission
a self-regulatory unit that considers challenges to issues raised by the national advertising division about an advertisement
Better business bureau national advertising review board
the application of knowledge and tools to solve problems and perform tasks more efficiently
Technology
what are the impacts of technology
rapid technologic and change are expected to continue, mobile devices and consumers increasing use of the internet have changed, can improve productivity, and expanding opportunities for e-commerce
the influences in a society and its cultures that bring about changes in people’s attitudes, beliefs, norms, customs, and lifestyles
sociocultural forces
right to safety
right to be informed
right to choose
right to be heard
Kennedy’s consumer bill of rights
What three things affect sociocultural forces
Demographics and Diversity characteristics, Cultural Values, and consumerism
an organizations obligation to maximize its positive impact and minimize its negative impact on society
social responsibility
the adoption of a strategic focus for fulfilling the economic, legal, ethical and philanthropic social responsibilities expected by stakeholders as shown in the pyramid of corporate social responsibility
Marketing citizenship
bottom level of the pyramid of corporate social responsibility; the foundation upon which all others rest
economic
2nd level of the pyramid of corporate social responsibility; law is society’s codification of right and wrong; play by the rules of the game
Legal
3rd level of the pyramid of corporate social responsibility; obligation to do what is right, just, and fair
Ethical
Top level of the pyramid of corporate social responsibility; contribute resources to the community, improve quality of life
Philanthropic
principles and standards that define acceptable conduct in marketing as determined by various stakeholders
marketing ethics
an identifiable problem, situation or opportunity requiring a choice among several actions that must be evaluated as right or wrong
Ethical Issues
the synergetic use of organizational core competencies and resources to address key stakeholders’ interests and achieve both organizational and social benefits
strategic philanthropy
the potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies
sustainability
a strategic process involving stakeholder assessment to create meaningful long-term relationships with customers while maintaining, supporting, and enhancing the natural environment
Green Marketing
the efforts of independent individuals, groups, and organizations to protect the rights of consumers
consumerism
an identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
ethical issues
factors that influence ethical decisions; in daily life, people base ethical decisions on personal principles and values
individual factors
factors that influence ethical decisions; an organizational setting, people rely on organizational values for ethical decision making
organizational relationships
factors that influence ethical decisions; conditions that limit barriers or provide awards
opportunity
formalized rules and standards that describe an organization’s employee expectations
code of conduct
are usually responsible for creating and distributing the code and meeting with organizational members to discuss or provide advice about ethical issues
Ethics Officer
codifying ethical standards and implementing compliance programs and codes of conduct that incorporate both legal and ethical concerns in the best approach to preventing violations
implementing ethical/ compliance programs
