Term
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Definition
1) Direct market environments
- Customers, company (resources and objectives of the firm), competitors
2) External market environments
- Economic, technological, political & legal, cultural & social |
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Term
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Definition
1) Engage in a socially and economically useful function
- triple bottom line = people, planet, profit
2) Develop an organization to carry on business and implement strategies
- even after original leadership steps down
3) Earn enough profit to survive |
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Term
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Definition
- Purpose statement (why that organization exists)
- Focused on markets, not products
- Marketing myopia: product focused, not market focused |
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Term
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Definition
- Competitive situations
- Competitive barriers (keeping competition out)
- Competitive analysis (who is my competition and what are they doing)
- Competitor matrix (comparing strengths and weaknesses)
- Competitive advantage (USP: unique selling proposition)
- Ethical issues |
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Term
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Definition
- Business cycles (recessions vs. stability)
- Inflation and interest rates
- Unemployment
- Global economy |
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Term
| Technological environment |
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Definition
- Advancements and predicting the future
- Economies of scale (technological advances can push price per unit down because cost to produce goes down)
- The internet
- Emerging industries
- Ethical issues (cookies, selling info to other companies) |
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Term
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Definition
- Nationalism (you put the interests of your country above other countries, which may hinder commerce)
- EU and NAFTA (European Union and North American Free Trade Agreement) |
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Term
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Definition
1) Sherman Act (broke up monopolies)
2) Clayton Act (made things illegal that substantially lessened competition)
3) FTC Act (Federal Trade Commission responsible for overseeing businesses)
4) Robinson-Patman Act (makes price discrimination illegal)
5) Wheeler-Lea Amendment (unfair/deceptive practices)
6) Magnuson-Moss Act (deals w/ product warranty)
7) Foreign Corrupt Practices Act (American companies held to US law no matter where they are)
8) State and local laws |
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Term
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Definition
1) FTC: federal trade commission
- in charge of business laws
2) FDA: food and drug administration
- in charge of recalling food and regulating
3) Consumer product safety commission
- Governs unsafe products |
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Term
| Changes in political/legal environment |
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Definition
- Deregulation
- less emphasis on antitrust laws
- maturing of consumerism (more emphasis on keeping consumer informed)
- more attention to governing international trade
- change in labeling requirements |
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Term
| Cultural and social environment |
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Definition
- better educated
- more single adults
- less free time
- marrying and children delayed, smaller families
- changing family roles
- health consciousness
- environmental awareness |
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Term
| Questions to answer about a potential market |
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Definition
1) relevant segmenting dimensions?
2) size?
3) where? |
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Term
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Definition
Gross Domestic Product
- total market value of goods and services produced by a country's economy in a year by both residents and nonresidents |
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Term
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Definition
Gross National Income
- similar to GDP, but excludes income earned by nonresidents |
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Term
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Definition
1) shifts
- between states (south and west)
- rural, urban, suburban
2) Mobility of Americans (we move a lot)
3) MSA (Metropolitan Statistical Area)
4) CMSA (Consolidated Metropolitan Statistical Area)
5) Teen cycle
- 2nd baby boom
6) "graying" of America
- baby boomers are getting old
7) Birthrates
- number of babies born per 1,000 people declining |
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Term
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Definition
- People who live in a certain area tend to be similar
- PRIZM can give demographic profile based on zip codes
- Clusters
- Demographic data (avg. household income, etc.)
- Media habits
- Lifestyles
- Purchase behaviors |
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Term
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Definition
1) Generation Z (youth)
2) Generation Y
- successful brands, hip, racially diverse
3) Generation X
- Skeptical of marketing, cynical
- Personal style rather than designer brands
4) Baby boomers
- traditional marketing, changes over the years
5) Older
- silent generation OPALS, WOOFS |
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Term
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Definition
1) Quantitative/qualitative criteria (to earn a certain profit)
2) Profit
3) ROI (return on investment as best way to evaluate success of a company)
4) Other (sustainability) |
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Term
| Evaluating multi-product firms |
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Definition
1) SBU (strategic business unit)
- organizational unit within a larger company which is a profit center
2) Portfolio management
3) GE strategic planning grid
- Business strength vs. Industry attractiveness
- compare SBU's |
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Term
| Continuum of Environmental Sensitivity |
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Definition
- Products and international markets (do we have to make change for international markets?)
- Industrial products vs. consumer products (industrial products are insensitive while consumer products are more sensitive and might need modifications) |
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