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MKTG 3650 - Foundations of Marketing Practice > Chapter 3 Vocab > Flashcards

Chapter 3 Vocab Flashcards

1
Q

Baby Boomers

A

Includes the generation of 76 million children born between 1946 and 1964.

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2
Q

Barriers to Entry

A

Business practices or conditions that make it difficult for new firms to enter the market.

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3
Q

Blended Family

A

A family formed by merging two previously separated units into a single household.

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4
Q

Competition

A

The alternative firms that could provide a product to satisfy a specific market’s needs.

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5
Q

Consumerism

A

A grassroots movement started in the 1960s to increase the influence, power, and rights of consumers in dealing with institutions.

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6
Q

Culture

A

The set of values, ideas, and attitudes that are learned and shared among the members of a group.

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7
Q

Demographics

A

Describing a population according to selected characteristics such as age, gender, ethnicity, income, and occupation.

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8
Q

Discretionary Income

A

The money that remains after paying for taxes and necessities.

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9
Q

Disposable Income

A

The money a consumer has left after paying taxes to use for necessities such as food, housing, clothing, and transportation.

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10
Q

Economy

A

Pertains to the income, expenditures, and resources that affect the cost of running a business and household.

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11
Q

Electronic Commerce

A

Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of products and services.

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12
Q

Environmental Scanning

A

The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.

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13
Q

Generation X

A

Includes the 50 million people born between 1965 and 1976. Also called the “baby bust”.

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14
Q

Generation Y

A

Includes the 72 million Americans born between 1977 and 1994. Also called the “echo-boom” or the “baby boomlet”.

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15
Q

Gross Income

A

The total amount of money made in one year by a person, household, or family unit. Also known as “money income” at the Census Bureau.

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16
Q

Marketspace

A

An information- and communication-based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings.

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17
Q

Multicultural Marketing

A

Combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences, and lifestyles of different races.

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18
Q

Regulation

A

Restrictions state and federal laws place on a business with regard to the conduct of its activities.

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19
Q

Self-regulation

A

An alternative to government control whereby an industry attempts to police itself.

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20
Q

Social Forces

A

The demographic characteristics of the population and its culture.

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21
Q

Technology

A

Inventions or innovations from applied science or engineering research.

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22
Q

Value Consciousness

A

The concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior.

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23
Q

Environmental trends typically arise from five sources: social, economic, technological, competitive, and regulatory forces.

A

-social -economic -technological -competitive -and regulatory forces.

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24
Q

The declining consumption of coffee is an example of a trend identified by environmental scanning.

A

Providing an explanation for the trend and assessing its implications are also an important part of environmental scanning.

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25
Q

The social forces of the environment include the demographic characteristics of the population and its values.

A

Changes in these forces can have a dramatic impact on marketing strategy.

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26
Q

Social Environmental Force–> Trend Identified by an environmental scan

A
  • movement toward healthful products and lifestyles
  • growing number and imporantce of hispanic americans.
  • population shifts to remote suburbs and small towns.
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27
Q

demographics-Describing the population according to selected characteristics such as age, gender, ethnicity, income, and occupation is referred to as demographics.

A
  • “The graying of America. - The U.S. population shows a continued increase in the number of people over age 65
  • Greater marketing attention has been focused on the mature household, headed by people over 50 years old.
  • These households control 75 percent of the net worth of U.S. households
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28
Q

The Baby Boom

A
  • Born between 1946 and 1964.
  • Account for 56-58% of the purchases in most consumer product and service categories.
  • Individualism is very important
  • Personalized economy product for boomers
    • custom-designed for small target markets
    • Immediacy of delivery
    • value.
  • This group focuses on
    • family
    • health
    • convenience
    • finances
    • reading materials.
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29
Q

Generation X

A
  • 15 % of the U.S. population
  • Born between 1965 and 1976 (the baby bust) (declining birth rate).
  • 48 million consumers
  • Marketers are now tracking this generation to identify the dominant consumption values of the 21st century.
  • These Consumers are:
    • self-reliant,
    • entrepreneurial,
    • supportive of racial and sexual diversity,
    • better educated,
    • Critical and suspicious
    • not prone to extravagance,
    • and likely to pursue lifestyles, products, and services that are very different from baby boomers
30
Q

Generation Y: Born To Shop

A

Born after 1976, (baby boomers began having children.

  • Also described as the echo-boom and the baby boomlet
  • Generation Y:
    • About 58 million Americans under age 16
    • Great impact on companies selling products from toys to Club Med family vacations.
    • Environmental changes affecting Generation Y include:
  • 60% of children aged < 6 have working mothers.
  • 61% of children aged 3 - 5 attend preschool.
  • 60% of households with children aged <=7 have computers.
  • More than one-third of elementary school students nationwide are Black or Hispanic.
  • About 15% of recent U.S. births were to foreign-born mothers.
  • Nearly one in three births in the early 1990’s was to an unmarried woman.
  • One-quarter of children under age 6 are living in poverty.
31
Q

More households with single parents and unrelated persons

A

The majority of divorced people remarry,

  • giving rise to the blended family,
  • one formed by the merging into a single household of two previously separated units.
32
Q

Continued major shift to western and sunbelt states in the 1990s.

  • California, Texas, and Florida accounted for 33 percent of the net population change,
  • These states gained more than 3 million persons each.
A

Populations are also shifting within states.

  • During the 1990s, the population shifted
    • from suburbs to more remote suburbs called exurbs
    • to smaller towns called penturbia.
33
Q

The Census Bureau collects data using a three-level classification system. From the largest to the smallest, these three areas are

  • the consolidated metropolitan statistical area (CMSA)
  • the primary metropolitan statistical area (PMSA)
  • the metropolitan statistical area (MSA).
A

The average U.S. citizen moves every six years.

34
Q
  • Approximately one in four U.S. residents is African-American, American Indian, Asian, Pacific Islander, or a representative of another racial or ethnic group.
  • Hispanics, who may be from any race, currently make up 12% of the U.S. population.
    *
A
  • Racial and ethnic groups tend to be concentrated in geographic regions.
  • 38% of children in the U.S., will be African-American, Hispanic, or Asian in 2010
  • The long-term consequences of their buying patterns must be understood.
35
Q

Developing marketing plans to reflect specific area differences

A
  • taste preferences,
  • perceived needs,
  • interests.​
36
Q

Culture is the set of

values,
ideas,
attitudes

of a homogeneous group of people
that is transmitted from one generation to the next.

A

Marketers monitor cultural trends to spot new opportunities.

37
Q

world wide, the number of people 60 years and older is expected to more than triple in the coming decades and reach 2 billion by 2050.

A

gloabl income levels and living standards have also been increaseing, although the averages across countires are very different.

38
Q

the relative size of countries such as india and china will mean they represent huge markets for many product categories.

A

the population in developing countries (africa, asia, and latin america) are growing.

india is predicted to have the worlds largest population in 2050 with 1.69 billion people and china will be a close second with 1.31 billion people.

39
Q

world population projections show that the proportion of the worlds population in more developed countries such as the united states, japan, australia, and those in europe is declining.

A

.

40
Q

elderly populations in developed countries are likely to save less and begin spending their funds on health care, travel, and other retirement-related products and services.

A

economic progress in developing countries will lead to growth in entrepreneurship, new markets for infrastructure related to manufacturing, communication, and distribution, and the growth of exports.

41
Q

the population is becoming larger, older, and more diverse.

A

this growth suggests that niche markets based on age, life stage, family structure, geographic location, and ethnicity will become increasingly important.

42
Q

today one of every three americans is a stepparent, stepchild, stepsibilng, or some other memeber of a blended family.

A

a major regional shift in the u.s. population toward southern and western states is underway.

43
Q

approximately one in three u.s. residents belongs to the following racial or ethnic groups: african american, native american or alaska native, asain american, or native hawaiian or pacific islander.

A

diversity is further evident in the variety of peoples that make up these groups.

44
Q

by 2030, the hispanic population will grow from 51 million to more than 78 million, or 22 percent of the population.

A

..

45
Q

because many of the elements of culture influence consumer buying patterns, monitoring national and gloabl cultural trends is important for marketing.

A

.

46
Q

today, commonly held values include

personal control, continuous change, equality, individualism, self-help, competition, future orientation, and action.

A

these values are useful in understandning most current behaviors of u.s. consumers, particurlay when they are compared to values in other countries.

47
Q

an increasingly imporant value for consumers in the united states and around the globe is sustainability and preserving the environment.

A

companies are also changing their business practices to respond to trends in consumer values.

48
Q

of particular concern at the macroeconomic level is the performance of the economy based on indicatiors such as GDP, unemployment, and price changes (inflation or deflation)

A

.

49
Q

in an inflationary economy, the cost to produce and buy products and services escalates as prices increase.

A

from a marketing standpoint, if prices rise faster than consumer incomes, the number of items consumers can buy decreases.

50
Q

periods of declining economic activity are referred to as recessions.

A

during recessions, businesses decrease production, unemployment rises, and many consumers have less money to spend.

51
Q

consumer expectations of the economy are an imporant element of environmental scanning.

A

consumer spending, which accounts for two-thirds of u.s. economic activity, is affectied by expectations of the furture.

52
Q

the mircoeconomic trends in terms of consumer income are also imporant issues for marketers. having a product that meets the needs of consumers may be of little value if theya re unable to purchase it.

A

a consumer’s ability to buy is related to income, which consists of gross, disposable, and discretionary components.

53
Q

if taxes rise or fall faster than income, consumers are likely to have more or less disposable income.

A

during a recessonary period, spending, debt, and use of credit all decline.

54
Q

discretionary income is used for luxury items.

A

.

55
Q

technological change is the result of research so it is difficult to predict.

A

.

56
Q

some of the most dramatic technolofical changes occuring now

A
  • connectivitiy will grow to include all customers, machines, vehicles, appliances, and mobile devicees to creat the “internet of things”
  • computers will develop all five senses to create intelligent data collection and personalized predictive capabilities.
  • green technologies such as smart grid electricity services, online energy management, and consumer-generated energy (e.g., home wind turbines) will gain widespread acceptance among american consumers.
  • 3D technologies will move from movie theaters and televisions to many new and useful applications.
57
Q

advances in technology have imporant effects on marketing. the cost of technology is plummeting, causing the customer value assessment of technology-based products to focus on other dimensions such as quality, service, and relationships.

A

technology also provides value though the development of new products.

58
Q

technology can also change existing products and the ways they are produced.

A

many companies are using technological developments to recycle products through the manufactuing cycle several times.

59
Q

many companies have adapted internet-based technolofgy internally to support their electronic business strategies.

A

.

60
Q

pure competition

A

many sellers and they each have a similar product.

-example wheat rice grain companies. distribution )in the sense of shipping products) is imporant but other elements of marketing ahve little impact.

61
Q

monopolistic competition

A
  • many sellers compete with substitutable products within a price range.
  • example, if price of coffee rises too much, consumers may switch to tea.

coupons or sales are frequently used marketing tactics.

62
Q

oligopoly

A

a common industry structure, occurs when a few companies control the majority of industry sales.

  • wireless telephone industry .
  • critics of oligoplies suggest that because there are few sellers, price competition among firms is not desirable becase it leads to reduced profits for all producers.
63
Q

pure monopoly

A
  • occurs hwne only one firm sells the product.
  • common for producers of products and services considered essential to a community: water, electricity, and cable service.
  • typically, marketing plays a small role in a monopolostic setting because it is regulated by the state or federal government.
  • governemtn control usually seeks to ensure price protection for the buyer, although deregulatoin in recent years has encouraged price competition in the elctricity market.
64
Q

in developing a marketing program, companies must consider the factors that drive competition: entry, the bargaining power of buyers and suppliers, existing rivalries, and substitution possibilites.

A

scanning the environment requires a look at all of them. these factors relate to a firm’s marketing mix decisions and may be used to crate a barrier to entry, increase brand awareness, or intensify a fight for market share.

65
Q

additional producers increase industry capacity and tend to lower prices.

A

barriers to entry can be in the form of capital requirements, advertising expenditures, product identity, distribution access, or the cost to custoemrs of switching suppliers.

-the higher the expense of the abrrier the more liekely it will deter new entrants.

66
Q

powerful buyers exist when they are few in number, there are low switching costs, or the product represents a significant share of the buyers total cost.

A

this last factor leads the buyer to exert significant pressure for price competition.

-a supplier gains power when the product is critical to the buyer and when it has built up the switcching costs.

67
Q

competitive pressure among exisiting firms depend on the rate of industry growth.

A

in slow-growth settings, competition is more heated for any possible gains in market share.

-high fixed costs also crate competitive pressures for firms to fill production capacity.

68
Q

small businesses make up the majority of the competitive landscape for most businesses.

A

research has shown a strong correlation between national economic growth and the level of new small business activity in previous years.

69
Q

for any organization, the marketing and broader business decisions are constrained, directed, and influenced by regulatory forces.

A

regulation exists to protect companies as well as consumers.

  • much of the regulation from the federal and state levels is the result of an active politcal process and has been passed to ensure competition and fair business practices.
  • for consumers, the focus of legislation is to protect them from unfair trade practices and ensure their safety.
70
Q

major federal legislation has been passed to encourage competition, which is deemed desirable because it permits the consumer to determine which competitor will succeed and which will fail.

A
  • first such law was the *Sherman Antitrust Act *(1890).
  • Clayton Act (1914)
  • *Robinson-Patman Act *(1936)
71
Q

various federal laws in existence specifically address the product compnent of the marketing mix. some are aimed at protecting the company. some at protecting the consumer, and at least one at protecting both.

A
  • company can protect competitive position and new and novel products under the patent law which gives inventors right to exclude others from making, using, or selling products that infringe the patented invention.
  • federal copyright law is another way for a company to protect its competitive position in a product. gives author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work. copyright is secured automatically when work is created.
72
Q
A

MKTG 3650 - Foundations of Marketing Practice (15 decks)

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