Chapter 5

Question 1

Consumers are the _________

Answer 1

centerpiece

Question 2

Immediate environmental factors in marketing:

Answer 2

-company capabilities
-competitors
-corporate partners
-physical environment

Question 3

Company capabilities (immediate environment)

Answer 3

successful marketing firms focus on satisfying customer needs that match their core competencies (they have goals for each day)

Question 4

Competitors (immediate environment)

Answer 4

know their strengths and weaknesses and likely reactions to firm’s marketing activities (ex: coke vs pepsi)

Question 5

Corporate partners (immediate environment)

Answer 5

parties that work with the focal firm (material/part makers, transportation, etc.)

Question 6

Physical environement (immediate environment)

Answer 6

sustainable development includes land, water, air, and living organisms (ex: energy trends, greener practices, greener marketing, greenwashing)
-17 global goals of sustainable development

Question 7

Macroenvironmental factors

Answer 7

-cultural environment
-demographics
-social environment
-technological environment
-economic situation
-political/legal/regulatory environment
-responding to the marketing environment
-

Question 8

Culture

Answer 8

the shared meanings, beliefs, moral, values, and customs of a group of people
-transmitted by words, literature, and institutions it is passed down from generation to generation and learned over time

Question 9

Country culture

Answer 9

involves visual nuances of a country’s culture such as artifacts, behavior, dress, symbols, physical settings, ceremonies, language differences, colors and tastes, and food preferences, as well as language (subtleness)

Question 10

Regional culture

Answer 10

involves the region in which people live in a particular country

Question 11

Demographics

Answer 11

provides an easily understood snapshot of the typical consumer in a specific target market
-marketers use data about consumers to target offers

Question 12

Age demographics

Answer 12

generational cohorts a group of people of the same generation, have similar purchase behaviors because they have shared experiences and are in the same stage of life

Question 13

Income demographic

Answer 13

purchasing power is tied to income

Question 14

Education demographic

Answer 14

related to income, which determines spending power

Question 15

Gender demographic

Answer 15

male/female roles have been shifting. Firms may need to be careful about gender neutrality in positioning their products

Question 16

Ethnicity demographic

Answer 16

ethically diverse segments (continually growing)

Question 17

Sustainability

Answer 17

meeting basic needs (certifications from various agencies)

Question 18

Health and wellness

Answer 18

health concerns, especially those pertaining to children (obesity)

Question 19

Efficient utilization and distribution of food

Answer 19

central to people’s lives and environments

Question 20

Technology

Answer 20

impacts every aspect of marketing
-new products and services
-new forms of communication
-new retail channels
-growing importance of mobile devices
-new cutting-edge technology

Question 21

Economic situation

Answer 21

affects the way consumers buy products and services and spend money
-monitor the economic situation in home country and abroad
-inflation
-foreign currency fluctuations
-interest rates

Question 22

Political/legal/regulatory environment

Answer 22

-fair competition
-consumer protection
-industry-specific regulations (FTC act)

Question 23

Responding to environmental forces

Answer 23

two approaches:
-passive
-proactive

Question 24

Passive response to environmental forces

Answer 24

accepting them as uncontrollable

Question 25

Proactive response to environmental forces

Answer 25

attempting to influence and shape them