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25 Cards in this Set

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Environmental scanning
the process of collecting information about forces in the
marketing environment; it involves observation, secondary sources (business, trade,
government, & general-interest publications) & marketing research; it gives
companies an edge over competitors by allowing them to take advantage of current
trends, however companies must know how to use this information in the strategic
planning process. The internet is a common tool for environmental scanning
Environmental analysis
the process of assessing and interpreting the information
gathered through environmental scanning; a manager evaluates the information for
accuracy, tries to resolve inconsistencies & can assign significance to the findings,
this allows the manger to identify potential threats & opportunities linked to
environmental changes.
brand competitors
firms that market products with similar features &
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, & prices
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
Monopoly
a competive structure in which an organization offers a product
that has no close substitutes, making that organization the sole source of
supply
Oligopoly
a competitive structure in which a few sellers control the supply
of large proportion of a product
Monopolistic Competition
a competitive structure in which a firm has
many potential competitors & tries to develop a marketing strategy to
differentiate its product
Pure competition
a market structure characterized by an extremely large
number of sellers, not strong enough to significantly influence price or
supply
Buying power
resources (money, goods, services) that can be traded in an exchange
& enable the individual to make purchases
Components of buying power
the major financial sources of buying power are
income, credit, & wealth
Income
amount of money received through wages, rents, investments,
pensions, & subsidy payments for a given period
Disposable income
money left over after tax payments, that
is used for spending or saving; this is what marketers are most
interested in
Discretionary income
disposable income left over after an
individual has bought the basic necessities of food, clothing &
shelter; people use this to purchase entertainment, vacations,
automobiles, education, pets, furniture, & pets
Credit
enables people to spend future income now or in the near future
Wealth
the accumulation of past income, natural resources, & financial
resources
Regulatory agencies and marketing activities
Regulatory agencies influence
product development, pricing, packaging, advertising, personal selling, &
distribution. Of all the federal regulatory agencies, the federal trade commission
(FTC) most heavily influences marketing activities; it allocates a large portion of
resources to curbing false advertising, misleading pricing, & deceptive packaging, &
labeling
Procompetitive legislation
laws designed to preserve competition, most were
enacted to end various antitade practices
Sherman Antitrust Act
was passed in 1890 to prevent businesses from
restraining trade & monopolizing markets
Examples of illegal anti-competitive practices
stealing trade
secrets or obtaining other confidential information from a competitor's
employees, trademark & copyright infringement, price fixing, false
advertising, deceptive selling methods ( bait & switch) and false
representation of products
Consumer protection legislation
since the mid-1800s lawmakers have passed
laws to prohibit adulteration of food & drugs, these types of laws became popular at
the federal level in the mid 60s & early 1970s; most deal with customer safety (food &
drug acts) & prohibit the sale of various hazardous products, some require that
information about specific products be put on its labels
Self-regulation
in an attempt to be good corporate citizens & prevent government
invtervention, some businesses try to regulate themselves; many were established
to stop or stall the development of laws & governmental regulatory groups that
would regulate the association's marketing practices; the best-known self regulatory
agency is the Better Business Bureau (BBB)
Technology assessment
a procedure where managers try to forsee the effects of
new products & processes on their firm's operations, on other business
organizations, & on society in general; with information obtained through a
technology assessment, management tries to estimate whether benefits of adopting
a specific technology outweigh costs to the firm & society at large
Socioeconomic changes
our population is getting older so businesses are taking a
proactive response to that; the U.S population aging is detrimental to certain
entertainment industries; phamaceutical companies however, are benefitting from
this. Bryan/College station is dominted by a youthful market because of the large
number of students. With a 40% divorce rate in the U.S right now cultural "family"
values are changing