Marketing Chapter 3

Front 1

Environmental Scanning

. Is the process of collecting information about

forces in the marketing environment.

. Scanning involves secondary sources such as

business, trade, government, and general-

interest publications; and marketing research.

Back 1

Environmental Analysis

. Is the process of assessing and interpreting the

information gathered through environmental

scanning.

. A manager evaluates the information for

accuracy, tries to resolve inconsistencies in the

data, and, if warranted, assigns significance to

the findings.

Front 2

Competition

Other organizations that market products that

are similar to or can be substituted for a

marketer's products in the same

geographic area

Back 2

Brand Competitors

Firms that market products with similar features and benefits to the same customers at similar prices.

Product Competitors

Firms that compete in the same product class but market products with different features,

benefits, and prices.

Front 3

Generic Competitors

Firms that provide very different products that solve the same problem or satisfy the same

basic customer need.

Total Budget Competitors

Firms that compete for the limited financial

resources of the same customers.

Back 3

Monopoly

A competitive structure in which an organization offers a product that has no close substitutes,

making that organization the sole source of

supply. Many barriers. Example: water utilities.

Oligopoly: A competitive structure in which a few sellers control the supply of a large proportion of a product. Some barriers. UPS Fedex

Front 4

Monopolistic Competition

A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product.

Many comp. Few barriers. Product differentiation with many substitutes. Wrangler and Levi

Back 4

Pure Competition

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

Unlimited Comp. No barriers. Homogeneous

products. Agricultural Corn Market

Front 5

Business Cycle

A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and

recovery.

Back 5

Prosperity

A stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power

(provide the inflation rate stays low.)

Front 6

Recession

A stage of the business cycle during which unemployment rises and total buying power declines, stifling both customer and business spending.

Back 6

Depression

A stage of the business cycle when employment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy.

Front 7

Recovery

A stage of the business cycle in which the economy moves from recession or depression toward prosperity.

Buying Power

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

Back 7

Income

For an individual, the amount of money received through wages, rents, investments, pensions, and subsidy payments for a given period.

Disposable income

After-tax income

Front 8

Discretionary Income

Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter.

Wealth

The accumulation of past income, natural resources, and financial resources.

Back 8

Willingness to spend

An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces.

Front 9

Federal Trade Commission (FTC)

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

Back 9

Better Business Bureau (BBB)

A system of nongovernmental, independent,

local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms.

Front 10

National Advertising Review Board (NARB)

A self-regulatory unit that considers challenges to issues raised by the National Advertising Division about an advertisement.

Technology

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

Back 10

Sociocultural Forces

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

Consumerism

Organized efforts by individuals, groups, and organization to protect consumers' rights.