Chapter 2

Question 1

environmental scan

Answer 1

continually gaining information on events occurring outside an organization to identify external trends

Question 2

6 elements/factors in an environmental scan

Answer 2

1. demographic
2. socio-cultural
3. economic
4. technological
5. competitive
6. regulatory

Question 3

3 steps in a marketing environmental scan

Answer 3

1. collecting the facts and identifying trends
2. determining the impacts that these trends have on the business
3. brainstorming, evaluating and implementation

Question 4

discretionary Income

Answer 4

money that consumers have left after paying tax and buying necessities

Question 5

disposable income

Answer 5

income that is used for spending and saving

Question 6

monopolistic competition

Answer 6

large number of sellers compete with each other, offering customers similar substitutes

Question 7

monopoly

Answer 7

when only one company sells in a particular market

Question 8

oligopoly

Answer 8

few companies control a market

Question 9

online behavioural advertising

Answer 9

The use of web-base program to track consumers online activity

Question 10

perfect competition

Answer 10

many sellers and many buyers

Question 11

show rooming

Answer 11

using mobile devices in store to check online competitive product reviews

Question 12

SWOT analysis

Answer 12

assessing how well an organization is doing by evaluating its internal strengths, weaknesses, opportunities and threats