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| A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the need of that group, resulting in mutually satisfying exchanges. |
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| When a company implements strategies that attempt to shape the external environment within which it operates. |
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| The practice of choosing goods and services that meet one's diverse needs and interests rather than conforming to a singe, traditional lifestyle. |
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| The study of people's vital statistics, such as age, race and ethnicity and location. |
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| People born between 1979 and 1994 |
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| People born between 1965 and 1978 |
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| People born between 1946 and 1964 |
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| A comparison of income versus the relative cost of a standard set of goods and services in different geographic areas. |
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| A measure of the decrease in the value of money, expressed as the percentage reduction in value since the previous year. |
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| A period of economic activity characterized by negative growth which reduces demand for goods and services. |
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| Pure research that aims to confirm an existing theory or to learn more about a concept or phenomenon. |
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| Research that attempts to develop new or improved products. |
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| A federal agency established to protect the health and safety of consumers in and around their home. |
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| Consumer Product Safety Commission (CPSC) |
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| A federal agency charged with enforcing regulations against selling and distributing adulterated, misbranded, or hazardous food and drug products. |
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| Food and Drug Administration (FDA) |
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| A federal agency empowered to prevent persons or corporations from using unfair methods of competition in commerce. |
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| Federal Trade Commission (FTC) |
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| Discuss the external environment of marketing and explain how it affects a firm. |
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Definition
| The external marketing environment consists of social, demographic, economic, technological, political and legal, and competitive variables. Marketers generally cannot control the elements of the external environment. Instead they must understand how the external environment is changing and the impact of that change on the target market. Then marketing manager can create a marketing mix to effectively meet the needs of target customers. |
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| Describe the social factors that affect marketing. |
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Definition
| Within the external environment, social factors are perhaps the most difficult for marketers to anticipate. Several major social trends are currently shaping marketing strategies. First, people of all ages have a broader range of interests, defying traditional consumer profiles. Second, social media, Web-based, and mobile technology change how people and marketers interact by allowing one-to-one, one-to-many, and many-to-many communications. Because facebook is about human-to-human interaction, companies are turning to it and other forms of social media with ever-increasing speed. |
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| Explain the importance to marketing managers of current demographic trends. |
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| Today, several basic demographic patterns are influencing marketing mixes. The U.S. population grew by 27 million from 2000 to 2010, but growth was unevenly distributed. Marketers are also faces with increasingly experiences consumers among the younger generations such as tweens and teens. And because the population is also growing older, marketers are offering more products that appeal to middle-aged and older consumers. |
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| Explain the importance to marketing managers of growing ethnic markets. |
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| About one in three U.S. residents is a memeber of a minority group. By 2050, about one in three U.S. residents will be Hispanic. Many companies are now creating departments and product lines to effectively target multicultural market segments. Companies have quickly found that ethnic markets are not homogeneous. |
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| Identify consumer and marketer reactions to the state of the economy. |
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| In recent years, U.S. incomes have risen at a slow pace. During a ime of inflation, marketers generally attempt to maintain level pricing to avoid losing customer brand loyalty. During times of recession, many marketers maintain or reduce prices to counter the effects of decreased demand; they also concentrate on increasing production efficiency and improving customer service. |
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| Identify the impact of technology on a firm. |
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Definition
| Monitoring new technology and encouraging research and development (R&D) of new technology are essential to keeping up with competitors in today's marketing environment. Innovation through (R&D) needs to be stimulated by upper-management and fostered in creative environments. Although developing new technology internally is a key to creating and maintaining a long-term competitive advantage, external technology is also important to managers. |
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| Discuss the political and legal environment of marketing. |
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Definition
| All marketing activities are subject to state and federal laws and the rulings of regulatory agencies. Marketers are responsible for remaining aware of an abiding by such regulations. Some key federal agencies that affect marketing are the Consumer Product Safety Commission, the Food and Drug Administration, and the Federal Trade Commission. Many laws, including privacy laws, have been passed to protect the consumer as well. In 2012, the FTC called for online data collectors to adopt better privacy policies and asked Congress to pass comprehensive privacy legislation. |
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| Explain the basics of foreign and domestic competition. |
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| The competitive environment encompasses the number of competitors a firm must face, the relative size of the competitors, and the degree of interdependence within the industry. Declining population growth, rising costs, and shortages of resources have heightened domestic competition. |
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