Chapter 2: The Marketing Environment, Social Responsibilities, and Ethics Flashcards

1
Q

Define Target Market

A

Target Markets are defined groups of potential customers that marketers feel is most likely to buy their company’s product over other company’s. Over time, marketers alter the marketing mix to keep those specific target markets

  • As markets mature, new customers become part of the target markets, and others drop out. Must always know your target markets and customize to them
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2
Q

Define External Environment

A

The external environment evaluates environmental information. Companies perform a process called environmental scanning. The factors within the environment that are important to scan are next

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3
Q

Define Competitive Factors as an (environment factor)

A

The competitive environment encompasses the competitors a company must face, the realize size of their competitors, etc (price, quality)

  • Know your company’s strengths and weaknesses vs competitors
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4
Q

Define Regulatory Factor as an (environment factor)

A

Marketers need thorough understanding of the laws and rules established by various levels of government and agencies. Company’s MUST follow these

  • Can be different wherever you are (liquor laws, etc)
  • Provincial, Federal, etc
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5
Q

Define Consumer Incomes/Median Total Family Income as an (economic factor)

A

Depending on the area your company is based out of, incomes are different, so you must customize to their income.

  • Cant sell high end products in a low income area (vice versa)
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6
Q

Define Purchasing Power as an (economic factor)

A

Income in comparison to cost of living

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7
Q

Define Cost of Living

A

The average cost to live in that specific area (community, city, town, etc)

  • Ex. Toronto being very high
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8
Q

Define Discretionary Income as an (economic factor)

A

Important to identify the consumer’s ability to spend and the ability to purchase higher priced goods and services

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9
Q

Define Inflation

A

A general decrease in the value of money (expressed as a percentage, measured per year)

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10
Q

Define Recession

A

A period of economic activity characterized by negative growth. Occurs when the Gross Domestic Product (GDP) falls

  • Switch to lower cost brands
  • Focus more on basic needs
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11
Q

Social Factors

A

These factors influence what we buy, the prices we pay, the effectiveness of promotions, where we buy, how we buy, and when we buy

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12
Q

Define Value as a (social factor)

A

A strong held belief. These can be formed through interactions like family, friends, influential people

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13
Q

Define Component Lifestyles as a (social factor)

A

Lifestyle being the way we live; the way we decide to live our lives

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14
Q

Define Family as a (social factor)

A

Huge influence on everything

  • DIVERSE
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15
Q

Demographic Factors

A

Each generation, and demographic have their own tastes, biases. Tailoring products to what customers value is KEY to sales

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16
Q

Generation Z

A

1995-2009 (very important generation). They are easy targets, easy to persuade, heavy users of social media and technology.

  • Hard to influence with traditional marketing styles
17
Q

Generation Y (Millennial’s)

A

1979-2000. Because the baby boomers in Canada are working well into retirement, this age group lacks job opportunities

  • Unstable unemployment (struggling)
18
Q

Generation X

A

1966-1978. Usually the “forgotten generation”.

19
Q

Baby Boomers

A

1947-1965 (post WWII). They are active and affluent. Some have been hurt by the recession and are worrying about money so they work longer, but some of the younger baby boomers are doing very well and can support their children into career paths

20
Q

Define Ethnic and Cultural Diversity (Multiculturalism)

A

DIVERSITY! In Marketing, marketers must adapt, promote, and accommodate to different cultures (foods, clothes, etc)

21
Q

Define Applied Research

A

The attempt to improve and/or develop products with new innovations (new technology, etc) to make them better. Applying new innovative thought, operating more efficiently

  • Brings the older products cheaper
  • Ex. New IPhone
22
Q

Define Corporate Social Responsibility (CSR)

A

The cost of doing business today (caring the the planet, caring for people, profitability)

23
Q

Define Green Marketing

A

The development and marketing of products designed to minimize negative effects on the environment . This tends to be more expensive (so target to high income communities)

  • Organic Foods, Recycling, etc
24
Q

Define Ethical Behaviour in a Business

A

Manners and rules you must follow that are ethically “right” and appropriate. Can be illegal or legal (but just rude)

  • Ex. race, religion
25
Q

Define Ethics

A

Standard behaviour by which conduct is judged. The moral principles and values.

26
Q

Define Laws

A

Are the values and standards enforced by courts

27
Q

Define Morals

A

Rules developed as a result of cultural norms and values

28
Q

Define Morality and Business Ethics

A

The values you use to make decisions in businesses that have been acquired since birth, through family, etc

29
Q

Define the Code of Ethics in a business

A

A guideline to help marketing managers and other make better decisions

30
Q

What is the Advantage of the Code of Ethics

A

To help employees identify the business practices their company recognizes as being acceptable

31
Q

What is the Canadian Marketing Association’s of Code of Ethics and Standards of Practice

A

It is designed to establish and maintain standards for the conduct of marketing