Exam 2 Flashcards
What are the five environmental factors ?
Social
Economic
Political and legal
Technological
Competition
What are common economic indicators
Personal savings and investments
Retail sales
Income
Price, wages, and productivity
Average hourly wage
Labor force and employment
What is the Sherman Antitrust Act?
It was passed to protect the public from monopolistic practices that hinder competition
What is the Clayton Act?
It was an amendment to the to the Sherman act. It contains provisions they set intended to retrain business people from circumvent the Sherman act by engaging in such practices or exclusive dealing contracts and tying agreements that substantially affect competitors opportunities to compete. Also made price discrimination illegal under some conditions.
What is the Federal Trade Commission Act(FTC) ?
It was passed to strengthen antitrust enforcement measures. This act’s sole provision states that “unfair methods of competition in or affecting commerce are hereby declared unlawful
What is the Robinson Patman Act ?
It is also an amendment to the Clayton Act. It was designed to close the loopholes discovered in the preceding two laws. This law forbids price discrimination in interstate commerce and prohibits unfair business practices that may reduce competition
Define culture
It is a set of traditional beliefs customs, and values that are shared in a given society
Distinctions that have been used to clarify subcultures include:
Socioeconomic group - upper class, lower class
Ethnic, racial, and nationality groups - African American, Hispanic, Irish Asians, native Americans
Geographic areas- south, Midwest
Age- adolescent, elderly
Community type - rural, urban
What is Porter fundamental forces?
Threats of new entrants
Intensity of rivalry among direct competitors
Pressure of substitute products
Bargaining power of buyers and suppliers
Criteria for accessing a competitive position:
market share
extent of product line
Price competitiveness
Promotion and distribution effectiveness
Capacity and productivity
Experience
Raw materials out
Financial position
Relative product quality
Caliber of personnel
General images
Specific situational factors that may influence the buyers choice follows:
Physical surroundings: decor,lighting,sounds,weather,humidity,or other visible objects or merchandise surrounding the stimulus.
Social surroundings: interpersonal interactions involving the person present, their characteristics, and their roles.
Task definition: a requirement or reason to shop. Such as a birthday gift or anniversary or any special occasion
Previous events: a fight with a spouse,problems at work, speeding ticket, or winning the lottery
Antecedent state: temporary moods or conditions that affect the buyer. Such as anxiety, fatigue, excitement,or having cash on hand
Economic influences:
Situation
Family
Reference group
Social class
Culture/subculture
Define Family
Group of two or mo’re persons related by blood, marriage, or adoption who live together
Define Nuclear family:
immediate group of father, mother, and children living together
Define tended family:
nuclear family and other relatives, such as grandparent uncles, aunts, cousins, and in laws
Define household
All person, both related and unrelated, who occupy a housing unit. The household is becoming an important unit of analysis for marketing managers because of the growth of non traditional and non family household.
Roles of family :
Initiator - the family member who first recognizes a need or starts the purchase process
• Information gatherer- The individual who has experience and interest in a particular purchase. Different individuals may seek information at different times or on different aspects of the purchase
• Influencer - The person who influences the alternative evaluated, the criteria considered,and the final choice
Decision maker- The individual who makes the final decision. Of course, joint decisions also are likely to occur
Purchaser - The family member who actually purchases the product. Typically an adult or teenager
User - The user of the product. For many products there are multiple users.
Define reference group
- a certain individual or group who the buyer goes to when forming an attitude or opinion about which product or service to buy- it is used in determining buyers needs, attitudes, and values.
Define social class
Major source of influence because buying is frequently directed by class structures social class is defined by a combination of occupational, income, educational, and other variables
Number of Social classes in U.S.?
There are seven social classes
Upper uppers - less than 1%
Lower uppers- about 2%
Upper middles- 12%
Middle class- 32%
Working class- 38%
Upper lowers- 9%
Lower lowers- 7%
Define subculture:
Included in group variations within a culture, provides values and beliefs that are distinguishable as its own.
Why does culture do?
It influences consumers to acquire specific goods and services
Name the four major subcultures that compromise the Hispanic custom group in the U.S.
Mexicans
Puerto Ricans
Cubans
Dominicans
Name Maslow’s hierarchy of human needs:
Self-actualization- Club med vacations and gourmet foods
Esteem-products-Brand name clothing and luxury cars
Social- products- cosmetics and clothing
Safety- products-Burgler alarms,smoke detectors, and seat belts
Physiological -products- low carb foods and no sugar drinks
What is post purchase response ?
when consumers experience anxiety or doubt about their purchase decision
What is Product positioning?
How you want consumers the perceive a product in their minds
What are the 4 dimensions of segmentation?
Demographic- Age, occupation ,income ,education, family size,gender,race,and religion
Geographic- Region, city, and climate
Psychographic- Activities, interests , opinions
Behavioral/Useage- Usage rates, user status , occasions , benefits
Define segmentation
the process of dividing a potential market into distinct subsets of consumers with similar needs or characteristics.
Define concentrated
marketing strategy targets one segment with a specific marketing mix.it is useful for smaller companies attempting to fill a market niche not occupied by financially strong companies.
Define differentiated
marketing strategy targets several segments with individual marketing mix. it is appropriate for strong companies that have the resources to develop many different products for different segments
Define undifferentiated
-marketing strategy targets several segments with one product.
Ex: Volkswagen served many subsets with differences of segmentation dimensions
Who are ultimate consumers
Those who buy for personal or household consumption
Organizational markets consist of :
business markets, reseller markets, and institutional markets:
Define business/industrial markets :
include all private companies that produce products and services.
Define reseller markets:
include retailers, wholesalers, and distributers
Define institutional markets :
include governments (local,state,federal, and foreign),not-for-profit agencies, educational institutions,hospitals, and churches.
Define derived demand concept:
understanding the nature and scope of the business market requires understanding the nature of demand posed by the ultimate consumer.
What are the 5 roles in an organization?
- Purchasing in large volumes
- Identifying alternative suppliers can result in bargaining for favorable prices.
- Purchasing a component that forms a major part of its product,
may result in buyers purchasing selectively
4 companies earning low profits are motivated to lower their purchasing costs - A particular product,raw material, or part is unimportant to the overall quality of the buyer’s finished product.
What are the demand characteristics of organizational buyers ?
Company size and structure
Geographic location
Type of Industry
Technology used
Ordering policies
Product application
Characteristics of key individuals in the buying center
Markets served
Decision rules in selecting vendors
Specific attributes in the organization’s buying Decisions and its attitudes toward vendors
