Chapter 4: Marketing Environment

Question 1

Environmental Scanning

Answer 1

Looking at change in outside environment to create a marketing plan. Also identifying changes and trends

Question 2

Discretionary Income

Answer 2

Amount left after spending on necessities (savings included)

Question 3

Environmental Management

Answer 3

When a company implements strategies that attempt to shape the external environment within which it operates

Question 4

What does STEEP +C stand for?

Answer 4

S-Social demographic
T-Technology
E-Economic
E-Environmental
P-  Political/Legal

C- Competitive

Question 5

Component Lifestyles

Answer 5

Choosing goods and services that meet one’s

diverse needs and interests, rather than conforming to a single, traditional lifestyle.

Question 6

Recession

Answer 6

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

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

Basic Research

Answer 8

Aims to confirm an existing theory or learn more about a concept or phenomenon.

Question 9

Applied Research

Answer 9

Attempts to develop new or improved products.

Question 10

Long Term Trends (technological factors)

Answer 10

Decreasing size and cost of microprocessors
Internet reach
Technology convergence
Faster cycle times

Question 11

Sherman Anti-Trust

Answer 11

Attempted to limit monopolies & cartels (conspiracy in restraint of trade)

Question 12

Clayton Antitrust Act

Answer 12

Addressed price discrimination, exclusive dealings, M&As

Question 13

Robinson-Patman Act

Answer 13

Further addressed price discrimination

Question 14

Wheeler-Lea Act

Answer 14

Outlaws false advertising

Question 15

Consumer Protect Safety Commision

Answer 15

Protects consumer safety in and around their homes

Question 16

FDA

Answer 16

Enforces safety regulations for food and drug products

Question 17

Federal Trade Commision

Answer 17

Prevents unfair methods of competition in commerce

Question 18

Bureau of Competition

Answer 18

• Reviews mergers and acquisitions
• Challenges anti-competitive conduct
• Promotes competition

Question 19

Bureau of Consumer Protection

Answer 19

• Enforces federal laws that protect consumers
• Empowers consumers with information
• Communicates with consumers about fraud and identity theft

Question 20

Consumer Privacy Regulation

Answer 20

Federal Do Not Call List (Telemarketing)
CAN-SPAM (email and text)
Credit Reporting Data Security

Question 21

Natural Environment Trend

Answer 21

Global warming
Pollution Use of resources
Sustainability

Question 22

Porter’s Framework for Competitor Analysis

Answer 22

Looks at what drives the competitors (Objectives and assumptions) and what the competitor is capable of doing (Strategy and resources)