MKT 300 Chapter 3 – Flashcards
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the process of collecting information about forces in the marketing environment.
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environmental scanning
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the process of assessing and interpreting the information gathered through environmental scanning (how deal with the information collected during scanning).
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environmental analysis
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accepting environmental forces as uncontrollable.
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passive
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attempting to influence and shape environmental forces.
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proactive
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firms that market products with similar features and benefits to the same customers at similar prices.
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brand competitors
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firms that compete in the same product class but market products with different features, benefits and prices.
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product competitors
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firms that provide very different products that solve the same problem or satisfy the same basic customer need.
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generic competitors
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firms that compete for the limited financial resources of the same customers.
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total budget competitors
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when an organization offers a product that has no close substitute, making it the sole source of supply.
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monopoly
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when a few sellers control the supply of a large proportion of a product.
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oligopoly
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when an organization with many competitors develops a marketing strategy to differentiate its product.
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monopolistic competition
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involves a large number of sellers, no one of which influences price or supply.
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pure competition
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a pattern of economic fluctuations that has four stages.
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business cycle: 1. prosperity 2. recession 3. depression 4. recovery
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unemployment is low and total income is relatively high.
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prosperity
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unemployment rises and total buying power declines.
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recession
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unemployment is very high, wages are very low, total disposable income is at a minimum and consumers lack confidence in the economy.
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depression
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the economy moves from depression or recession to prosperity.
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recovery
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after-tax income
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disposable income
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disposable income available for spending and saving after an individual has purchased the basic necessities.
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discretionary income
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refers to laws designed to preserve competition.
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procompetitive legislation
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federal and state laws that protect people from harm, prohibit hazardous products, require information disclosure, and aimed at particular marketing activities
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consumer protection legislation
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most heavily influences marketing activities (of all regulatory units)
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Federal Trade Commission
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a system of nongovernmental, independent, local regulatory agencies supported by local business that help settle problems between customers and specific business firms.
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Better Business Bureau
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a self-regulatory unit that considers challenges to issues raised by the National Advertising Division about an advertisement.
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National Advertising Review Board
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the application of knowledge and tools to solve problems and perform tasks more efficiently.
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technology
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Kennedy's Consumer "Bill of Rights" (4)
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Right to safety, be informed, choose, and be heard
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To monitor changes in the marketing environment effectively, marketers must engage in... a) environmental scanning and analysis b) economic scanning c) self-regulatory analysis d) marketing research analysis e) information collecting
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a
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Most marketers operate in a competitive environment of either... a) oligopoly or monopoly b) oligopoly or monopolistic competition c) oligopoly or pure competition d) monopoly or pure competition e) pure competition or monopolistic competition
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b
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Which of the following is a characteristic of pure competition? a) large number of sellers b) differentiation of products c) large number of entry barriers d) few competitors e) no product substitutes
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a
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Which of the following is a characteristic of the prosperity stage of the business cycle? a) there is a high amount of unemployment b) the buying power of consumers is low c) total income is relatively high d) customers are more price- and value-conscious e) there is a decrease in consumer and business spending
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c
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The amount of money left after payment of taxes that is used by individuals for spending on purchase of basic necessities, and savings is referred to as ____ a) disposable income b) wealth c) discretionary income d) income e) credit
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a
