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MKT > Chapter 3: The Global Enviroment > Flashcards

Chapter 3: The Global Enviroment Flashcards

1
Q

Marketing Environment consists of what…

A

The marketing environment consists of outside factors that impact a companies ability to reach marketing goals.

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2
Q

What are considered forces in the marketing environment?

A

Political, economic, demographic, sociocultural, technological.

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3
Q

Direct Competition

A

Direct competition occurs when similar products compete against each other.

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4
Q

Substitute Products

A

Substitute Products are goods and services that can be used in place of each other.

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5
Q

Indirect Competition

A

Indirect competition occurs when products provide alternative solutions to the same market.

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6
Q

Environmental Scanning

A

The process of monitoring developments outside of the firm.

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7
Q

What factors influence a firms marketing environment?

A

Factors include economic, demographic, sociocultural, political, legal, and technological.

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8
Q

Gross Domestic Product (Economic Factor)

A

GDP is the market value of all official final goods and services produced in a country

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9
Q

What does the GDP measure?

A

size and health of an economy

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10
Q

GDP per capita

A

Indicates the country’s standard of living

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11
Q

Recession

A

Occurs when the GDP declines for two or more quarters back to back

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12
Q

What does a recession cause?

A

A recession can cause layoffs, unemployment spikes, and reduced consumer confidence

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13
Q

Inflation

A

Inflation is the increase in general level of a products price over a period of time

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14
Q

Purchasing Power

A

Purchasing Power is the amount of goods and services that can be bought for a specific amount

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15
Q

Consumer Confidence

A

A measure of how optimistic consumers are about the economy and their own finances

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16
Q

Demographics

A

Human characteristics such as age, gender, ethnicity, and education.

17
Q

Sociocultural Factors

A

Sociocultural factors are social and cultural factors that impact human development

18
Q

PACs

A

PACs are committees that raise money to help elect individuals who support their issue(s).

19
Q

Why do governmental bodies regulate businesses?

A

Governmental bodies regulate businesses so that they compete fairly and don’t take advantage of their customers.

20
Q

Sherman Antitrust Act (1890)

A

Eliminated monopolies and encouraged competition

21
Q

Robinson-Patman Act (1936)

A

Simplified prohibitions on selling the same product at different prices

22
Q

Wheeler-Lea Act (1938)

A

Prohibited deceptive and misleading adverts

23
Q

Federal Trade Commission (FTC)

A

Investigates complaints made about organizations

24
Q

Fair Packaging and Labeling Act (1966)

A

Guarantees that packages are correctly labeled

25
Q

The Telephone Consumer Protection Act of 1991

A

Reduced the use of telemarketing

26
Q

Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD)

A

Banned unfair credit rate increases & requires disclosures about min payments and interest rates be made in plain english.

27
Q

Currency Fluctuation

A

Currency Fluctuation is how the value of a currency is changed in relation to another.

28
Q

Currency Exchange Rate

A

The currency exchange rate is the price of once country’s currency in terms of another.

29
Q

North American Free Trade Agreement (NAFTA)

A

NAFTA established a free-trade zone within the U.S, Canada, and Mexico

30
Q

What was the goal of NAFTA?

A

NAFTA’s goal was to eliminate trade barriers between the U.S, Canada, and Mexico

31
Q

Tariffs

A

Tariffs are taxes on imported and exported goods

32
Q

United States-Mexico-Canada Agreement

A

USMCA

33
Q

What was is the goal of USMCA?

A

USMCA had several goals including having car and truck parts made in North America, upgrading environment & labor regulation, and stricter protections for patents and trademarks.

34
Q

Dominican Republic-Central American Free Trade Agreement (DR-CAFTA)

A

DR-CAFTA’s goals are to eliminate tariffs, reduce non-tariff barriers, and facilitating investment amongst the states.

35
Q

European Union (EU)

A

The EU was formed to create a european market by reducing barriers to the free trade of goods services and financies among its members.

36
Q

World Trade Organization (WTO)

A

Regulates members trade, and helps importers and exporters.

37
Q

International Monetary Fund (IMF)

A

The IMFs goal is to promote economic cooperation, trade, employment, and exchange rate stability worldwide

38
Q

Consumer Ethnocentrism

A

Ethnocentrism is the belief that it is immoral to buy foreign goods and services

39
Q

How are nonprofits funded?

A

Grants, special events, and donations.

MKT (8 decks)

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