Marketing Chapter 3

Front 1

Environmental Scanning

Back 1

the process of collecting information about forces in the marketing environment

Front 2

Environmental Analysis

Back 2

the process of assessing and interpreting the information gathered through environmental scanning (how you deal with the info collected)

Front 3

3 Needs and Trends

Back 3

fad, trend, and megatrend

Front 4

Fad

Back 4

short-lived (bell bottoms, furbies, beanie babies, pokemon cards)

Front 5

Trend

Back 5

1-7 years (unemployment rate, housing market)

Front 6

Megatrend

Back 6

large political, economic, etc. that affect us forever (outsourcing)

Front 7

10 Megatrends Shaping the Consumer Landscape

Back 7

1. shifting populations/markets
2. health care crisis
3. a dearth of skilled workers
4. increasing immigration issues
5. delayed retirement
6. state taxes taking a bigger bite
7. a long, painful energy squeeze
8. warming to global climate change
9. living with less water
10. growing global powers

Front 8

2 Environmental Forces

Back 8

uncontrollable and controllable

Front 9

Uncontrollable Forces

Back 9

passive & reactive

Front 10

Controllable Forces

Back 10

active & reactive

Front 11

4 Types of Competitors

Back 11

brand, product, generic, and total budget

Front 12

Brand Competitors

Back 12

firms that market products with similar features and benefits to the same customers at similar prices (Coke & Pepsi)

Front 13

Product Competitors

Back 13

firms that compete in the same product class but market products with different features, benefits, and prices (water, gatorade, red bull ,tea)

Front 14

Generic Competitors

Back 14

firms that provide very different products that solve the same problem or satisfy the same basic customer need (for a night out: game, movie, bar, etc)

Front 15

Total Budget Competitors

Back 15

firms that compete for the limited financial resources of the same customers (anything you spend money on)

Front 16

Brand and Product Competition

Back 16

other firms that market products that are similar to or can be substituted for a firm's products in the same geographic area (IKEA & Lowe's compete in the kitchen remodeling market)

Front 17

Characteristics of Competitive Structures

Back 17

monopoly, oligopoly, monopolistic competition, pure competition (look at table on pg 4 in packet)

Front 18

3 Economic Forces

Back 18

economic conditions, buying power, and willingness to spend

Front 19

The Business Cycle (4)

Back 19

prosperity, recession, depression, recovery

Front 20

Prosperity

Back 20

unemployment is low and total income is relatively high

Front 21

Recession

Back 21

unemployment rises and total buying power declines

Front 22

Depression

Back 22

unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy

Front 23

Recovery

Back 23

the economy moves from depression or recession to prosperity

Front 24

Buying Power

Back 24

resources, such as money, goods, and services, that can be traded in an exchange

Front 25

4 Political Forces

Back 25

1. Enactment of legislation
2. Legal decisions interpreted by courts thru civil & criminal cases
3. Influence on regulatory agencies
4. Marketers

Front 26

Federal Trade Commission (FTC)

Back 26

an agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling

Front 27

Monopoly

Back 27

offers no close substitutes, making it the sole source of supply

Front 28

Oligopoly

Back 28

a few sellers control the supply of a large proportion of a product

Front 29

Monopolistic Competition

Back 29

a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product

Front 30

Pure Competition

Back 30

characterized by an extremely large number of sellers, none strong enough to significantly influence price or supply

Front 31

6 Regulatory Agencies

Back 31

-Federal Trade Commission (FTC)
-FDA
-Consumer Product Safety Commission
-Federal Communications Commission (FCC)
-Environmental Protection Agency (EPA)
-Federal Power Commission (FPC)

Front 32

Self-Regulatory Forces (2 Businesses)

Back 32

Better Business Bureau
National Advertising Review Board

Front 33

2 Advantages of Self-Regulatory Forces

Back 33

less expensive & more realistic and operational

Front 34

3 Limitations of Self-Regulatory Forces

Back 34

1. nonmember firms do not have to abide
2. lack enforcement tools
3. often less strict

Front 35

Technology

Back 35

the application of knowledge and tools to solve problems and perform tasks more efficiently

Front 36

3 Effects of Technology

Back 36

dynamic change, ability to reach customers, and self-sustaining technology

Front 37

Sociocultural Forces

Back 37

the influences in a society and its culture(s) that change people's attitudes, beliefs, norms, customs, and lifestyles

Front 38

What age group is the leading reason socioculture forces change?

Back 38

TEENS

Front 39

Social Responsibility

Back 39

an organization's obligation to maximize its positive impact and minimize its negative impact on society

Front 40

Marketing Citizenship

Back 40

the adoption of a strategic focus or fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Front 41

Stakeholder Orientation/Responsiveness

Back 41

when companies consider the diverse perspectives of stakeholders in their daily operations and strategic planning

Front 42

Philanthropic Dimension of Social Responsibility (2 types)

Back 42

cause-related marketing & strategic philanthropy

Front 43

Cause-Related Marketing

Back 43

the practice of linking products to a particular social cause on an ongoing or short-term basis (GAP-red AIDS in Africa)

Front 44

Strategic Philanthropy

Back 44

the synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits (Home Depot...Habitat for Humanity)

Front 45

3 Stakeholder Groups

Back 45

customers, marketing channel members, employees