Ch 3

Question 1

marketing environment analysis framework

Answer 1

internal
- consumers
- microenvironment (company, competition, corporate partners)

external
- microenvironment (culture, demographic, social/nature, technology, economic, political/legal)

Question 2

Company capabilities

Answer 2

Core competency = Satisfy customer needs

Knowledge, facilities, patents, technology, people -> applied to -> target markets, products

Question 3

Competition

Answer 3

• Identify and analyze direct and indirect competitors
• Know strengths & weaknesses
• Competitive Intelligence (CI) used to collect and synthesize info

Question 4

Corporate Partners

Answer 4

• Firms are part of alliances – few work in isolation to create a seamless system that delivers goods and services to customers when and where they want them
• Align with suppliers, corporate partners

Question 5

Generational cohorts

Answer 5

Generation Z – Born after 1991
Generation Y – Born 1982 to 1991
Generation X – Born 1965 to 1981
Baby Boomers – Born 1946 to 1964

Question 6

Social and natural trends

Answer 6

• Shape consumer values
• 17 Global Goals of Sustainable Development highlight social issues associated with meeting basic needs, such as ensuring consistent, universal access to sufficient food, clean water, health care, and sanitary living conditions, mainly by eliminating extreme poverty.

Question 7

Pricing Strategies

Answer 7

Price Fixing
Price Discrimination
Predatory Pricing
Resale Price maintenance
Bid Rigging

Question 8

Price Fixing

Answer 8

Sellers conspire to set the price of a product, usually higher than it would be in a free market

Question 9

Price discrimination

Answer 9

Charging different prices to different (competing) buyers for goods of the same quality and of the same quantity

Question 10

Predatory pricing

Answer 10

Pricing that is intended to drive competitors out of the market or keep competitors from entering the market

Usually low prices

Question 11

Resale price maintenance

Answer 11

Manufacturers/channel members try to influence the price at which the product is sold to subsequent purchasers

Question 12

Bid rigging

Answer 12

Sellers collude to set prices in response to bids or quotations for products

Question 13

Illegal Price Strategies

Answer 13

Misleading advertising
Bait and switch
Referral selling

Question 14

Misleading advertising

Answer 14

All types of advertising about a product or service that are false or misleading

Question 15

Bait and switch

Answer 15

Sellers try to attract customers to their stores by offering a low price on a product (bait) but once the customers are in the store, sellers try to persuade them to buyer a higher-price item (switch)

Question 16

Referral selling

Answer 16

Incentives offered to consumers to provide the names of other potential customers

Question 17

Refusal to Deal

Answer 17

A seller refuses to sell products or services to legitimate buyers

Question 18

Exclusive dealing

Answer 18

A seller refuses to sell other channel members unless that member agrees to buy exclusively from that particular seller

Question 19

Pyramid selling

Answer 19

Schemes where salespersons are paid to recruit other salespeople, and each new salesperson pays for the right to recruit other salespeople with some of that money going to earlier recruiters. Participants are often asked to buy a specific quantity of goods or are knowingly sold unreasonable quantities of goods and are not allowed to return the goods on commercially reasonable terms