Marketing 304 – 3 – Flashcards
Unlock all answers in this set
Unlock answersquestion
the direct market environment includes...
answer
customers, the company, and competitors.
question
variables of the market environment are controllable?
answer
no, uncontrollable
question
the external environment is broader an includes four major areas:
answer
Economic environment Technological environment Political and legal environment Cultural and social environment
question
what are the three company objectives that need to be sought together?
answer
1) engage in specific activities that will perform a socially and economically useful function 2) develop an organization to carry on the business and implement its strategies 3) earn enough profit to survive.
question
When setting objectives for the whole firm, TOP MANAGEMENT should:
answer
involve the marketing manager in the objective setting process.
question
a patent owner has a...
answer
20-year monopoly to develop and use its new product, process, or material.
question
competitive environment
answer
affects the number and types of competitors the marketing manager must face and how they may behave.
question
what are the four basic kinds of market situations?
answer
pure competition - large number of sellers, similar products, distribution is important monopolistic competition - large number of sellers, unique but substitutable products, pricing is important, local monopoly oligopoly - a few large competitors, similar products, promotion is key monopoly - single producer, unique products and unsubstitutable, marketing mix is unimportant
question
Economic environment
answer
refers to macro-economic factors, including national income, economic growth, and inflation, that affect patterns of customer and business spending. - the crisis of 2008 - changes in the economy are often accompanied by changes in the interest rates. - interest rates and inflation affect buying - the global economy is connected - changes in the exchange rate affect international trade. dollar is strong = expensive US products overseas and foreign products cheaper in the states.
question
Technological environment
answer
the application of science to convert an economy's resources to output. affects marketing in two ways: 1. opportunities for new products and 2. for new processes (ways of doing things). - technology transfer is not automatic - different approach to pricing because of internet - ethical issues: difficult to recycle aseptic drink boxes
question
internet
answer
a system for linking computers around the world.
question
political environment
answer
-strong sentiments of nationalism affect how macro-marketing systems work. - nationalistic feelings can reduce sales. ex. CHina -regional grouping ex. Europe and NA - the euro eliminated exchange rates in the EU, but created issues when countries in the union have economic problems ex. Germany to Greece [political and legal environment]
question
legal environment
answer
- competition among many small firms helps the economy. - attempts to limit competition are contrary to public interest. [political and legal environment]
question
North American Free Trade Agreement, NAFTA
answer
lays out a plan to reshape the rules of trade among the US, Canada, and Mexico. - enlarges the free-trade pact - possible loss of jobs in higher labor cost countries like US. - cultural differences will not disappear overnight
question
nationalism
answer
an emphasis on a country's interests before everything else--affect how macro-marketing systems work. [Political and legal environment]
question
Which of the following is NOT primarily an example of the influence of technology on the external market environment?
answer
The government passes a law that prohibits use of cell phones while driving a vehicle.
question
American legislative and economic thinking assumes that:
answer
competition among many small firms helps the economy.
question
The Wheeler-Lea Amendment specifically aims at:
answer
unfair or deceptive practices.
question
Which of the following is least likely a result of shifts in the cultural and social environment?
answer
A toy manufacturer recalls a playpen with a defective latch and Toys 'R' Us stores remove them from the shelf.
question
Cultural and social environment
answer
affects how and why people live and behave as they do--which affects customer buying behavior and eventually the economic, political, and legal environments. - role of women - demographic data related to pop. and income is important - 50 yrs ago, 2/3 of world pop. lived in rural areas - today, 50% live in urban areas - affluent, big-city consumers often have similar lifestyles and needs. - no market where there's no income - international market = income most important dimension
question
GDP is the total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country and...
answer
thus is affected by economic conditions and the productivity of workers in the country.
question
gross domestic product, GDP
answer
GNI does not include income from foreigners - literacy rates in a country influence development - cell phone and internet usage races across continents [Cultural and social environment]
question
Antimonopoly laws:
answer
Sherman Act (1890) - monopoly or conspiracy in restraint of trade Clayton Act (1914) - substantially lessens competition Federal Trade Commission Act (1914) - unfair methods of competition Robinson-Patman Act (1936) - tends to injure competition Wheeler-Lea Amendment (1936) - unfair or deceptive practices Antimerger Act (1950) - lessens competition Magnuson-Moss Act (1975) - unreasonable practices
question
Gross domestic product (GDP):
answer
is affected by economic conditions and the productivity of workers in the country.
question
All of the following countries listed more than 75 percent of their populations as Internet users in 2009 EXCEPT:
answer
Algeria
question
The state with the largest percentage increase in population between 2000 and 2010 is:
answer
Nevada
question
Which of the following population groups is the most techno-savvy?
answer
Gen Y
question
According to the General Electric strategic planning grid, a business that is the strongest in its industry:
answer
is a good prospect, provided the industry has at least medium attractiveness.
question
STP marketing is...
answer
modern marketing
question
Segmentation
answer
an aggregating process that clusters people with similar needs into a "market segment." Major steps - Naming broad product-markets - Identify bases (factors or variables) for segmenting markets; - Develop relevant market segment profiles; - Segment the broad product-market - Choose the target segment(s).
question
Market segment
answer
is a (relatively) homogeneous group of customers who will respond to a marketing mix in a similar way.
question
Consumer Characteristics
answer
• Geographic - Country or a region within a country - Level of urbanization (urban, suburban, rural?) • Demographic Age, Sex, Income, Education, Family size, Family life cycle stage, Occupation, Nationality Social class. • Psychographic - Lifestyle - Attitudes about self, family, and society.
