Marketing Chapter 4

Front 1

Macro-environment

Back 1

demographic

economic

social-cultural

competitive

political / legal

technological

Front 2

Micro-environment

Back 2

the company itself

suppliers & distributors

market intermediaries

publics that influence effectiveness of strategic plans

Front 3

decision support systems

Back 3

using databases and business models to gather, store, process, and present data in forms and formats pertinent to strategic planning decisions

Front 4

balanced score card systems

Back 4

planning and decision systems designed to furnish balanced measures and initiatives to activate and control strategic plans

Front 5

relationship marketing (RM)

Back 5

emphasis on long-term, mutually beneficial relationships

Front 6

Integrated marketing communications (IMC)

Back 6

mandate that all brand contacts received or divers online and offline communication channels be relevant to individual wants and needs

Front 7

demographic environment

Back 7

age
gender
family size
family life cycle
income
occupation
education
religion
race
nationality

Hint 7

State of being variable

often the strongest variables in predicting consumer behavior

Front 8

population trends

Back 8

growth rate (1.6%)

age mix

Front 9

key demographic variables

Back 9

dispersion

ethnicity

education

Front 10

spending patterns

Back 10

1) disposable income - income after taxes

2) discretionary income - income after taxes and necessities

3) Engel's law

Front 11

Engel's law

Back 11

as discretionary income goes up, the percentage spent on:

basic necessities decreases

housing remains constant (except for utilities which decreases)

other (i.e. luxury, recreation, education, self help) increases

Front 12

business cycles affect on buying patterns

Back 12

prosperous - expanded product lines, increased promotion & distribution, increased prices

recessions - lower prices, eliminate marginal products, increase promotion, launch value-priced offers

recoveries - consumers can buy but aren't willing to

Front 13

inflation's affects on purchasing patterns

Back 13

1) buy now in anticipation of increasing prices

2) alter purchasing patterns to mitigate losses through inflation

3) postpone purchasing entirely

Front 14

per-capita income distribution possibilities

Back 14

1) almost all low per-capita income

2) some high, lots of low per-capita income

3) roughly equal low, middle, and high per-capita income

4) roughly all middle per-capita income

Front 15

Social classes

Back 15

relatively homogeneous and enduring divisions in a society

members have similar values, interests, and behaviors

Front 16

culture

Back 16

a complex whole, learned, and shared by members of a society

encompasses beliefs, values, language, religion, art, morals, law, education, customs, habits, and capabilities

Front 17

values' characteristics

Back 17

1) guides culturally appropriate behavior

2) difficult to change

3) widely accepted

4) Incline people to respond to stimuli in standard ways

Front 18

value categories

Back 18

Core - highly persistent (getting married)

Secondary - more likely to change (age to get married, family size)

Subculture - separate segments of a culture organized around race, nationality, religion, location, ect.

instrumental values - focus on modes of conduct (means: ambition, self-discipline)

terminal values - end States of existence (end: happiness, prosperity)

material - things people buy

non-material - ideas, customs, beliefs,

Front 19

marketer's first 2 tasks

Back 19

1) identify variables that will predispose people to buy the product

2) incorporate predisposing values into their marketing plan/mix

Front 20

3 approaches for identifying cultural variables

Back 20

observation fieldwork - trained researches observing a small sample

content analysis - inference by verbal and pictorial communication

Value measurement surveys - scaled questionnaires call value instruments

Front 21

Rokeach Value Survey (RVS)

Back 21

groups respondents by evaluation of

1) terminal values

2) instrumental values

3) related buying behaviors

Front 22

SRI International's Value and Lifestyle Survey (VALS)

Back 22

1) need-driven consumers (11%)

2) outer-directed consumers (66%)

3) inner-directed consumer (21%)

4) integrated consumers (2%)

Front 23

political-legal environment's affects

Back 23

1) monetary and fiscal policy

2) social legislation & regulatory agency policies

3) government relationships with individual industries

4) marketing legislation

5) information that helps marketers - census info

Front 24

Sherman Act 1890

Back 24

prohibits restraint of trade and monopolization

States competitive marketing system is national goal

Front 25

Clanton Act 1914

Back 25

strengthens Sherman Act

restricts price discrimination, exclusive dealing, tying contracts, and interlocking board of directors

Front 26

Federal Trade Commission Act 1914

Back 26

Establishes FTC to investigate business practices

prohibits unfair competition

Front 27

Robinson-Patman Act 1936

Back 27

prohibits price discrimination in sales to wholesalers, retailers, or other producers

prohibits selling at unreasonably low prices to cut competition

Front 28

Wheeler-Lea Act 1938

Back 28

amends FTC Act to outlaw additional unfair practices

gives FTC jurisdiction over false & misleading advertising

Front 29

4 types of competition

Back 29

Brand competition

Substitute products

Generic competition from similar products

Desire competition (other desires a customer might satisfy before buying the product)

Front 30

Monopoly

Back 30

When a product is offered by the government, private regulated monopoly, or a private monopoly

Inelastic demand

Front 31

Oligopoly

Back 31

Few, large sellers of similar products

Many smaller sellers following lead

Front 32

Kinked demand curve

Back 32

When competitors quickly match any attempt to generate additional sales by lowering prices

Hint 32

Front 33

Pure competition

Back 33

Many sellers offering similar products to many buyers

Front 34

Monopolistic competition

Back 34

Few or many sellers offer products that are at least perceived as different by customers.

Front 35

Key questions in formulating competitive strategy

Back 35

What markets should the company compete in?

How should the company compete in these markets?

Front 36

Micro-environmental threats and opportunities

Back 36

The company
Customers
Suppliers and marketing intermediaries
Publics

Hint 36

More control over these than over Macro-environmental threats and opportunities

Front 37

Types of customers

Back 37

The product market

The reseller market

The government market

The international market

Front 38

Company threats and opportunities

Back 38

Conflicts from differing views on what publics and company resources are most important

Hint 38

Management must coordinate all functions towards customer satisfaction and get all functional areas to view their activities through customer eyes

Front 39

Types of intermediaries

Back 39

Financial intermediaries
Banks, insurance, credit card

Selling intermediaries
Agents, brokers, wholesalers, retailers,

Physical distribution intermediaries
Warehouse, rail, truck, airline

Marketing service agents
Marketing research firms, advertising agencies, media consultants

Front 40

Types of publics

Back 40

Welcome
Stockholders
Venture capitalists

Unwelcome
Negative product reviews

Sought
Favorable publicity