Chapter 4: the Marketing Environment Flashcards
What is a target market?
A group of people or organizations for which an organziation designs, implements, and maintains a marketing mix intended to meet their needs, resulting in mutually satisfying exchanges
Why must managers alter the marketing mix?
Due to changes in consumer environments, new entrants and exits in the market, technological shifts, and evolving consumer tastes, needs, incomes, and lifestyles
What is environmental scanning?
The process of collecting and evaluating environmental information to identify future market opportunities and threats
What are some key
American values?
- Self-sufficiency
- Upward mobility
- Work ethic
- Equality
- Individualism
- Achievement orientation
- Helping others
- Protecting the environment
What is the impact of component lifestyles on consumer behavior?
People choose products and services that meet diverse needs and interests rather than conforming to traditional stereotypes, making buying habits more complex
How are social media affecting marketing?
Social media allows consumers to share beliefs, values, and ideas at a rapid pace, making purchases based on shared content, and brands can use social media to humanize their image
What is demography?
The study of people’s vital statistics (such as age, race, ethnicity, and location) which is an uncontrollable variable in the external environment
Why is population important to marketers?
The population is the basis of all markets, and it becomes more useful when broken into smaller, more specific segments
Why is the Hispanic American market important?
It’s the largest non-white ethnic group in the US, and marketers focus on what is important to them culturally
Why is the African American market influential?
It represents 13% of the US population, has a strong influence on trends, and believes in cultural connections, expecting brands to support social causes
What makes the Asian American market appealing to marketers?
They have the highest average family income and are better educated, making them a ‘marketers’ dream’
What is purchasing power?
It is measured by comparing income to the relative cost of a standard set of goods and services in different geographic areas, reflecting how much discretionary income is available
What is inflation?
A rise in prices where buyers are unwilling to pay more than the subjective value they place on a product, regardless of the seller’s cost
What is a recession?
A period of economic activity characterized by negative growth, typically occurring when GDP falls for 2 consecutive quarters
What is required for technological succes?
- Innovation, which requires imagination
- Risk-taking
- A corporate structure that promotes successful management of new technologies
