Chapter 3 (Book) Flashcards
What are the 4 external market environments?
- Economic environment
- Technological environment
- Political and legal environment
- Cultural and social environment
Mission statement
Sets out the organization’s basic purpose for being
Pure competition
Market that has a broad range of competitors who are selling the same products. (perfect competition)
Oligopoly
Is a market form in which a market or industry is dominated by a small number of sellers (oligopolists). Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers
Monopoly
A monopoly is a market structure in which there is only one producer/seller for a product. In other words, the single business is the industry. Entry into such a market is restricted due to high costs or other impediments, which may be economic, social or politica
Monopolistic competition
A type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes.
Economic environment
Refers to macro-economic factors, including national income, economic growth, and inflation, that affect patterns of consumer and business spending. The rise and fall of the economy in general, within certain industries, or in specific parts of the world can have a big impact on what customers buy
Technology (environment)
The application of science to convert an economy’s resources to output. Technology affects marketing in two basic ways; it creates opportunities for new products and for new processes
Nationalism
An emphasis on a country’s interests before everything else
NAFTA (North American Free Trade Agreement)
Lays out a plan to reshape the rules of trade among the United States, Canada, and Mexico. NAFTA basically enlarges the free-trade pact that had already knocked down most barriers to U.S-Canada trade, and eliminated most such barriers with Mexico.
Cultural and social environment
Affects how and why people live and behave as they do - which affects customer buying behavior and eventually the economic, political, and legal environment
GDP (gross domestic product)
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
Baby boomers
Those born between 1946 and 1964, reach aged 65 in 2011
Sustainability
The idea that it’s important to meet present needs without compromising the ability of future generations to meet their own needs
