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Flashcards in Chapter 3 Deck (34):
1

External market environment

1. Economic environment

2. Technological environment

3. Political and legal environment

4. Cultural and social environment

2

3 Business Objectives

1. Engage in specific activities that will perform a socially and economically useful function

2. Develop an organization to carry on the business and implement its strategies

3. Earn enough profit to survive

3

Mission statement

Sets out the organization's basic purpose for being

Should focus on a few key goals rather than embracing everything

4

Patent

Protects a new idea or process

They get a 20-year monopoly to develop and use its new product, process, or material

5

4 basic kinds of market (competitive) situations

Pure competition

Oligopoly

Monopolistic competition

Monopoly

6

competitor analysis

an organized approach for evaluating strengths and weaknesses of current or potential competitor's marketing strategies

initial step: identify potential competitors

7

competitive rivals

firms that will be the closest competitors

*could be currently serving similar needs with a different type of product

8

competitive barriers

The conditions that make it difficult, or even impossible, for a firm to compete in a market

9

Economic and technological environment

Affects the way firms - and the whole economy - uses resources

Technical skills and equipment affect the way companies convert an economy's resources into output

The economic environment is affected by the way all of the parts of a macro-economic system interact

10

Interest rates usually __________ during periods of inflation

increase

11

Exchange rate

How much one country's money is worth in another country's money

Have an important efect on international trade

*When the dollar is strong, it's worth more in foreign countries. Makes U.S. products more expensive overseas and foreign products cheaper in the U.S.

12

Technology

The application of science to convert an economy's resources to output

Affects marketing in 2 basic ways: 

1. opportunities for new products

2. for new processes

13

Nationalism

An emphasis on a country's interests before everything else

affect how macro-marketing systems work

14

North American Free Trade Agreement (NAFTA)

Lays out a plan to reshape the rules of trade amont the U.S., Canada, And Mexico

Establishes a forum for resolving future trade disputes

15

Legal environment

Sets the basic rules for how a business can operate in society

May severely limit some choices, but changes in laws and how they are interpreted also create new opportunities

16

culture and social environment

Affects how and why people live and behave as they do

17

Gross domestic product (GDP)

The total market value of all goods and services provided in a country's economy in a year by both residents and nonresidents of that country

18

Gross national Income (GNI)

A measure that does not include income earned by foreigners ho own resources in that nation

GDP does include foreign income

19

Marketers are more interested in the size of _________________ than in the number of people within political boundaries

homogeneous marketing areas

20

Metropolitan Statistical Area (MSA)

An integrated economic and social unit with a large population nucleus

Generally, centers on one city or urbanized area of 50,000 or more inhabitants and includes bordering urban areas

21

Quantitative product-market screening data

Sales

Profit

Return on investment (ROI)

22

Qualitative market screening data

Summarize what kinds of businesses the firm wants to be in

What businesses it wants to exclude

What weaknesses it should aoid

What resources (strengths) and trends it should build on

23

Ecomagination

Applying GE's creativity to solve problems related to ecology

24

Sustainability

The idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs

Many organizations now screen opportunites on sustainability

25

Strategic business unit (SBU)

An organizational unit (within a larger company) that focuses on some product-markets and is treated as a seperate profit center

A company formally acknowledges its very different activities

 

26

Some SBUs might be milked =>

that is, used to generate cash for the business with more potential

 

27

Industrial products tend to be:

insensitive

28

Basic commodity-type consumer products tend to be:

in the middle of the continum of environmental sensitivity

29

Consumer products that are linked to cultural variables tend to be:

sensitive on the continum of environmental sensitivity

30

Senior citizen group

People over 65

Willl increase by 15 percent during this decade

2010-20202 a whopping increase of 35.8% is expected

31

Baby boomers

Produced over 1/4 of the piopulation

Now beginnig retirement

32

Generation X

Born after the baby boomers

33

Generation Y

Millenials

34