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56 Cards in this Set
- Front
- Back
Environmental Forces: Social
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1. Demographic shifts
2. Cultural changes |
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Environmental Forces: Economic
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1. Macroeconomic conditions
2. Consumer income |
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Environmental Forces: Technological
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1. Changing technology
2. Technology's impact on customer value 3. Electronic business technologies |
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Environmental Forces: Competitive
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1. Alternative forms of competition
2. Small businesses |
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Environmental Forces: Regulatory
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1. Laws protecting competition
2. Laws affecting marketing mix actions 3. Self-regulation |
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Environmental Scanning
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The process of continually acquiring information on events occurring outside the organization to identify and interpret potential trends.
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Demographics
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describe population according to selected characteristics such as age, gender, ethnicity, income and occupation
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Baby boomers
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consist of the generation of children born between 1946 - 1964
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Generation X
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Includes the 15% of the population born between 1965 - 1976
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Generation Y
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Includes the 72 million Americans born between 1977 - 1994.
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Social forces
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the demographic characteristics of the population and its values
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Blended family
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family formed by merging two previously separated units into a single household
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Multicultural Marketing
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consists of combinations of the marketing mix that reflect the unique attitudes, ancestry, communication preferences and lifestyles of different races
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Culture
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consists of the set of values, ideas, and attitudes that are learned and shared among the members of a group
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Value consciousness
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The concern for obtaining the best quality, features, and performance of a product or service for a given price that drives consumption behavior.
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Economy
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Pertains to the income, expenditures, and resources that affect the cost of running a business and a household.
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Gross Income
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the total amount of money made in one year by a person, household, or family unit.
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disposable income
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the money a consumer has left after paying taxes to use for necessities such as food, housing, clothing and transportation
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discretionary income
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the money that remains after paying for taxes and necessities
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technology
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consists of inventions or innovations from applied science or engineering research
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Marketspace
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an information and communication based electronic exchange environment mostly occupied by sophisticated computer and telecommunication technologies and digitized offerings
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Electronic commerce
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any activity that uses some form of electronic communication in inventory, exchange, advertisement, distribution and payment of goods and services
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Continuum of competition: Pure Competition
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Number of sellers: Large number of sellers
Product differences: Similar products Importance of Marketing mix: Place (distribution) is important |
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Continuum of competition: Monopolistic Competition
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Number of sellers: Large number of sellers
Product differences:Unique but substitutable Importance of Marketing mix: Pricing is important |
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Continuum of competition: Oligopoly
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Number of sellers: A few large competitors
Product differences: Similar products Importance of Marketing mix: Promotion is key to achieve perceived product differences |
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Continuum of competition: Monopoly
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Number of sellers: Single producer
Product differences: Unique and unsubstitutable Importance of Marketing mix: Unimportant |
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Competition
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consists of the alternative firms that could provide a product to satisfy a specific market's needs
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Barriers to entry
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business practices or conditions that make it difficult for new firms to enter the market
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Components of competition
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1. Threat of New Entrants
2. Bargaining Power of Buyers 3. Threat of Substitute Offerings 4. Bargaining Power of Suppliers |
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Consumerism
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grassroots movement started in the 1960s to increase the influence, power and rights of consumers in dealing with institutions
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self-regulation
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an alternative to government control where an industry attempts to police itself
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Ethics
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the moral principles and values that govern the actions and decisions of an individual or group
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Four ways to classify marketing decisions according to ethical and legal relationships
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1. Ethical but illegal
2. Ethical and legal 3. Unethical and illegal 4. Unethical but legal |
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Framework for understanding ethical behavior
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1. societal culture and norms
2. business culture and industry practices 3. corporate culture and expectations 4. personal moral philosophy and ethical behavior |
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Consumer Bill of Rights (1962)
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The right....
to safety to choose to be informed to be heard |
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Caveat emptor
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the legal concept of "let the buyer beware" that was pervasive in the American business culture prior to the 1960s
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Right to Safety
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consumer product safety commission
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right to be informed
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federal trade commission (FTC)
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right to choose
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slotting allowances/fees
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right to be heard
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do not call registry
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economic espionage
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clandestine collection of trade secrets or proprietary information about a company's competitors
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code of ethics
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formal statement of ethical principles and rules of conduct
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whistle-blowers
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employees who report unethical or illegal actions of their employers
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Moral idealism
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personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome
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Utilitarianism
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a personal moral philosophy that focuses on the "greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior.
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Three concepts of social responsibility
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1. profit responsibility
2. stakeholder responsibility 3. societal responsibility |
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Profit responsibility
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1. public interest groups
2. ecological environment 3. general public |
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stakeholder responsibility
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1. suppliers
2. distributors 3. employees 4. consumers |
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profit responsibility
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1. owners
2. stockholders |
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triple-bottom line
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the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth
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social responsibility
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the idea that organizations are part of a larger society and are accountable to that society for their actions
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cause marketing
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when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
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social audit
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consists of a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility
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sustainable development
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consists of conducting business in a way that protects the natural environment while making economic progress
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green marketing
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consists of marketing efforts to produce, promote and reclaim environmentally sensitive products
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laws
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society's values and standards that are enforceable in the courts
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