Chapter 8: Marketing Environment Flashcards
0
Q
When is environmental scanning done?
A
Continually
1
Q
What is environmental scanning?
A
Process of continually acquiring information on events occurring outside the organisation to identify and interpret potential trends
2
Q
Where does environmental scanning take place?
A
Outside the organisation
3
Q
The activity environmental scanning does is
A
Acquiring information on events
4
Q
The ultimate goal of environmental scanning is to
A
Identify and interpret trends
5
Q
What are the sources for environmental trends?
A
Social Economic Technological Competitive Regulatory
6
Q
How do trends affect brands?
A
It’s marketing
7
Q
What is also called interpreting trends?
A
Explaining trends
8
Q
What are social forces?
A
Demographic characteristics of the population
Values of population
9
Q
What are some demographic characteristics?
A
Age Gender ethnicity Income Occupation
10
Q
What is the trend regarding age that affects Asia and the whole world?
A
Ageing population
11
Q
In SECTR, what can be found?
A
Trends
12
Q
Ageing populating means
A
More people in society are elderly
13
Q
An ageing population trend gives opportunities to
A
Elder care services Hospices Medical and hospitalization services Retirement homes Vacation Recreational packages
14
Q
What is the phenomenon when fewer families are having children or average families are having fewer children
A
Baby dearth
15
Q
A baby dearth threatens businesses such as
A
Toy manufacturers
Tuition centers
Gaming centers
16
Q
To deal with changing trends, marketers have to
A
Continually monitor their target segment
17
Q
When marketers monitor their market segment, they can see if
A
It is shrinking
Or growing
18
Q
Generational cohorts are defined based on
A
Economic circumstances
Lifestyles
Buying behaviour
19
Q
What are the generational cohorts?
A
Baby boomers
Gen x
Gen y
Millennial a
20
Q
What do baby boomers want?
A
Products making them feel younger
Health
Travel
Retirement
21
Q
What do gen x value?
A
Openness and diversity
Technologically literate
22
Q
What phase or gen x in now? What are they interested in
A
Parenthood
Products and services catered to their children
23
Q
What do gen y exert influence on?
A
Music Sports Computers Video games Cellphones
24
What era are millennials born into?
E commerce
| Advanced Internet
25
What do millennials enjoy?
Everything digital
26
What is the trendsin gender in developing counties ?
Preference for male children
27
What is a trend affecting boys and girls?
Androgynous look
28
The androgynous look affects what world?
Fashion world
29
Consumer preferences are blurred for
Gender dominated colours
| Designs
30
The proportions of races of residents change due to
Immigration policies
31
What are ethnic based products?
Mother tongue newspapers and magazines
Traditional cultural restaurants
Religious devices
32
What are trends in income?
Rise of high net worth individuals
| Ride of average family incomes
33
Why is there higher income for average families?
Dual income
| Smaller family size
34
What are things higher income families demand?
Imported groceries
Premium economy air tickets
Latest electronic gadgets
Good wine
35
What do high net worth individuals want?
Luxury services
Ultra high quality products
Success symbols
36
Success symbols include
Yachts
| Sports cars
37
What is a trend regarding occupation?
Rise of white collar workers, professionals
38
Why is there a rise of white collar workersv
Shift to knowledge and service oriented industries
39
What industries require blue collared workers?
Manufacturing
| Construction
40
What companies are affected?
Fashion
| F and b
41
What kind of f and b places do white collar workers visit?
Client entertaining cafes
| Socializing restaurants
42
What fashion is affected with more white collar workers?
More formal clothing
43
What is learned and shared in a culture?
Set of values
Ideas
Attitudes
44
What forms a culture?
Group made of members
45
What are cultural trends marketers monitor?
National
| Global
46
What is involved in economy?
Income
Expenditures
Resources that affect cost of running a bis
Cost of maintaining a household
47
What is a macroeconomic trend?
Inflation
| Recession
48
When there is inflation, people tend to
Spend less
| Save more for rainy daysh
49
A recession affects what sort of products?
Premium luxury
50
Consumers settle for what kind of products when there is a recession?
No frills
| Basic products
51
What is the difference in price and income in an inflation
Price rises faster than income
52
What are the types of income a consumer
Gross income
Disposable income
Discretionary income
53
What is disposable income?
total income minus taxes
54
What is discretionary income
Disposable minus necessities
55
Discretionary income can be used for
Luxury items
56
Marketers are most concerned about which income?
Discretionary
57
From where is technology created from?
Applied science
| Engineering research
58
What is technology
Inventions
| Innovations
59
A new wave of technological innovation can
Replace existing products
60
What is consumer technology
Changes that affect consumer way of life
Make things easier to do
Save energy and cost
Enjoyment of life
61
What are product or material technology?
Changes that affect the quality of raw and processed materials and component parts
62
What are examples of dramatic technological change in materials?
Nano technology
| Synthetic overs
63
What are production or process technology?
Affect efficiency of operations
| Monitoring and control in goods and services
64
What are the areas of technological advancements
Consumer
Material
Production
65
What does technology do to customer value?
Increases
66
When there is lower cost in technology, there are many affordable brands, consumer can assess based on dimensions such as
Quality
Service
Relationships
67
Because of lower cost of technology, marketers have to provide
```
Higher quality
Higher reliability
Better advice
Customer service
Customer relationship management
```
68
Technology provides value by developing new products. It also replaces existing obese Marketers need to look out for
New technology to incorporate into products
| Technology that will cause their products to become outdated
69
Technology affects customer value also known as
Marketing
70
Technology also change the way in which
Existing products are produced
71
What is an example of change in production methods?
Recycling
72
What is competition made up of?
Collective group of firms
73
What does competition do?
Provide alternative product
| To satisfy a specific markets need
74
What do marketers consider in competition?
The level of competition that is present
| Potential to Enter market
75
What are the types of competition
Pure competition
Monopolistic competition
Oligopoly
Pure monopoly
76
When is there pure conpetition?
Many companies
Identical products
Wide distribution fight
Less focus on 4Ps
77
When is there monopolistic competition?
Many sellers
Substitute basis of products. Differentiated
Fight on product differentiation
78
What tactics are used in monopolistic competition to fight for customers?
Sales discounts
| Coupons
79
What is oligopoly?
Few companies, control majority of industry sass
| Price competition not desirable
80
To avoid price competition in oligopoly, what is done
Collude to fix prices
| Product quality standards offered
81
Why is price competition avoided in oligopoly?
Reduces profits
82
What are the factors that drive competition?
Barriers to entry
Power of buyers and suppliers
Existing compeitors and subs
83
What are the forms of barriers to entry?
```
Heavy Capital investment
Advertising expenditure
Product identity (brand image)
Distribution access
Customer switching costs
```
84
What do barriers to entry do?
Make it difficult for new firms to enter
| Protect existing firms
85
Buyers are powerful when
Low switching cost
Few in number, large in number
Represent significant share of buyers total costs
86
A supplier is powerful when
Supply is critical to the company
| Built up switching costs
87
When an industry grows slowly, what is the impact?
Higher competition as firms need to fight for business
88
What does higher fixed costs mean?
Make competitors fight more
| Fill production capacity
89
What are regulations?
Laws or restrictions
90
What do regulations do?
Provide a boundary for how companies conduct activities
| In the course of doing business
91
Who do regulations protect?
Consumers
| Other companies
92
What are examples regulations can protect against?
Unfair trade practices
| Product safety
93
How are consumers protected with competition?
Consumers have more choices
94
When there is competition, there cannot be
Monopolizing of the market
95
How does a firm monopolise the market?
Offering high prices
| Low quality products
96
What do anti-monopoly laws not allow
Buying over of competitor firm
| Forcing them out of the market
97
What is the product related legislation?
Laws to make sure company marketing mix for product meets certain standards
Fulfill basic consumer needs that it is communicated to be able to meet
98
What are examples of protection for companies from competitors?
Patent
| Copyright
99
Patent law does not allow others to
Make
Use
Sell
Inventions that are patented
100
What does copyright protect?
Literary
Dramatic
Musical
Artistic work
101
What does copyright enable the author to do?
Exclusive right to print, perform , copy work
102
How is copyright secured?
Automatically
103
What are some unfair company practices?
Food, drugs cosmetics nutrition
| Environmental damage
104
How is a company protected from a consumer?
Trademark laws
105
What is trademark?
Exclusive right to use a name symbol that is unique
106
When is trademark lost?
When it becomes generic
107
Now, trademark can be used for
Colours
108
What are laws regarding pricing?
Price fixing
| Price discounting
109
Price fixing results in
Anti competition
110
What's are distribution related regulations?
Exclusive dealing
Requirement contracts
Exclusive territorial distributorship
Tying arrangement
111
What are laws regarding advertisement and promotions enacted to prevent?
Deceptive or misleading advertising
| Unfair business practices
112
What do laws regarding advertising make companies do?
Corrective advertising
| Cease and desist orders
113
What is PDPA
Personal data protection act
114
What is an example of PDPA
do not call registry
115
Do not call registry prevents marketers from making
Unsolicited telemarketing calls to people who do not want to be disturbed
