Chapter 9 Flashcards
(172 cards)
1
Q
What is marketing environment?
A
The actors and forces outside marketing that affect marketing management’s ability to build and
maintain successful relationships with target customers.
2
Q
Why is monitoring the marketing environment crucial for companies?
A
It helps companies adapt to changes or lead them, ensuring they remain competitive and responsive to customer needs.
3
Q
More than any other group in the company, marketers must be______
A
Environmental trend trackers and opportunity seekers
They also spend more time in customer and competitor environments.
4
Q
What special aptitudes do marketers have for understanding the environment?
A
Although every manager in an organization should watch the outside environment, marketers have two special aptitudes. They
have:
- disciplined methods (marketing research, marketing intelligence)
-marketing analytics (for collecting information and developing insights about the marketing environment)
5
Q
How can marketers respond to changes in the marketing environment?
A
By studying the environment carefully and adapting strategies to meet new challenges and opportunities.
6
Q
What is demography?
A
The study of human populations
in terms of size, density, location,
age, gender, race, occupation, and
other statistics
7
Q
Why is the demographic environment important to marketers?
A
It focuses on people, who make up markets, and demographic changes can create both opportunities and challenges for businesses.
8
Q
What is the current world population, and how is it expected to grow?
A
Growing at explosive rate: exceeds 7.6 billion and is projected to surpass 8.5 billion by 2030.
The world’s large and highly diverse population poses both opportunities and challenges.
9
Q
Why do marketers keep a close eye on demographic trends and developments in their markets?
A
Changes in the world demographic environment have major implications for business.
10
Q
What aspects of demography are marketers particularly interested in?
A
- Changing age and family structures
- Geographic population shifts
- Educational characteristics
- Population diversity
11
Q
What is the current population of Canada, and how is it expected to grow?
A
As of 2019, Canada’s population exceeded 37.3 million and is projected to reach 42 million by 2035.
12
Q
What is the most significant demographic trend in Canada?
A
The changing age structure, with the population rapidly aging due to falling birthrates and longer life expectancies.
13
Q
How has the median age in Canada changed over time?
A
The median age was 26 in 1970 and increased to 41 by 2019.
14
Q
What are the implications of an aging population?
A
This aging of the population will have a significant impact on markets and those who service them.
15
Q
The Canadian population contains several generational groups. What are the 4 largest that the textbook covers?
A
- Baby boomers
- Generation X
- Millennials
- Generation Z
16
Q
What are baby boomers?
A
The 9.4 million people born during
the years following World War II
and lasting until 1965.
17
Q
How many baby boomers are there in Canada, and when were they born?
A
There are 9.4 million Canadian baby boomers, born during the post–World War II baby boom from 1946 to 1965.
18
Q
How does the Canadian baby boom differ from the U.S. baby boom?
A
The Canadian baby boom lasted an additional year, ending in 1965, compared to 1964 in the U.S.
19
Q
What is the age range of Canadian baby boomers today?
A
The youngest are in their 50s, and the oldest are in their early 70s (well into retirement)
20
Q
Why are baby boomers significant in the marketing environment?
A
They are the wealthiest generation in Canadian history and account for over 25% of the population, controlling the highest spending power of any age cohort.
21
Q
What markets are baby boomers particularly lucrative for?
A
Financial services, new housing and home remodeling, new cars, travel, entertainment, dining out, health and fitness products, among others.
22
Q
Why might some marketers overlook baby boomers?
A
Some marketers target highly coveted millennials, stereotyping older boomers as stuck in the past, out of touch, or uninterested in new products.
23
Q
How do baby boomers perceive themselves as they age?
A
Many baby boomers see themselves as entering new life phases rather than phasing out or slowing down.
24
Q
How do Canadian baby boomers defy stereotypes about aging?
A
More active boomers have no intention of abandoning their youthful lifestyles as they age.
- Adults 50+ account for 80% of luxury travel spending in NA
- 82% open to new brands
25
What stereotypes do boomers defy about technology?
Boomers are also digitally active and increasingly social media savvy.
Some 70 percent of baby boomers now use mobile internet. And they are the fastest-growing shopper demographic online, outspending younger generations two to one
26
How do baby boomers prefer marketers to address them?
Although boomers may buy lots of products that help them deal with issues of aging (vitamins, blood-pressure monitors, Good Grips kitchen tools), they value approaches that align with their youthful thinking rather than emphasizing their age.
27
How did Sun Life challenge stereotypes about older consumers?
Through its "Welcome to life over 50" campaign, using ads that featured older individuals embracing adventurous and glamorous lifestyles.
28
Why did Sun Life launch its campaign targeting baby boomers?
Research revealed that older consumers felt brands misunderstood them, finding marketing efforts “perplexing, annoying, and amusing.”
29
What is Generation X?
The 7.2 million people born
between 1966 and 1980 in the
“birth dearth” following the baby
boom
Author Douglas Coupland calls them Generation X because they lie in the
shadow of the boomers.
30
How many Gen X are there in Canada?
7.2 million
31
Why are Gen X sometimes overlooked?
They are an "in-between" consumer group
Considerably smaller than the boomer generation that precedes them and the millennials who
follow
32
How is Generation X different from other generations in terms of materialism?
Although they seek success, they are less materialistic than the other groups; they prize experience, not acquisition.
33
What are the main priorities for many Generation Xers, especially those who are parents and homeowners?
Family comes first for Generation X, including both their children and aging parents, with career being secondary.
34
How do Generation Xers approach shopping and marketing?
Gen Xers are a more skeptical bunch. They are sensible shoppers who research products heavily before
they consider a purchase, prefer quality to quantity, and tend to be less receptive to overt marketing pitches
35
What is the level of brand loyalty among Generation Xers?
Once Generation X finds a brand they trust, they tend to be more loyal than other generational groups.
36
How do Generation Xers respond to advertising?
More receptive to irreverent ad pitches that make fun of convention and tradition.
37
What is the technological adaptation of Generation X?
Generation X grew up before the internet but adapted to digital technology during their young adulthood and are now fully connected, embracing the benefits of new technology.
38
What is the current life stage of Generation X?
Generation X is now in their 40s and early 50s, firmly into their careers, with many being proud homeowners and having growing families.
39
How educated is Generation X?
Generation X is the most educated generation to date.
40
What is Generation X's purchasing power?
They possess hefty annual purchasing power.
Make up less than 20 percent of the Canadian population, but are more likely to have household incomes higher than $100 000 than either
the baby boomer or millennial generation.
41
Why do many brands focus on Gen Xers as a target segment?
Gen Xers represent a prime target segment due to their purchasing power, with 82% of them owning their own homes. This makes them particularly important for home-related products.
42
How does Lowe's market to Generation X?
Lowe’s markets heavily to Gen X homeowners, urging them to "Never Stop Improving."
Through ads, online videos, and a substantial social media presence, Lowe’s provides ideas and advice on a wide range of indoor and outdoor home-improvement projects and problems, providing solutions that make life simpler for busy Gen X homeowners and their families.
43
What are millenials?
The 8.6 million children of the
baby boomers born between 1981
and 1997.
44
When were millennials born and how large is their population in Canada?
Millennials, also called Generation Y or echo boomers, were born between 1981 and 1997. There are over 8.6 million millennials in Canada.
45
Why are millennials an attractive market for brands?
Millennials wield substantial buying power and make up a huge market, both now and in the future, due to their large numbers.
46
What are millennials relationships with technology?
One thing that all millennials have in common is their comfort with digital technology. They don’t just embrace technology; it’s a way of life. The millennials were the first generation to grow up in a world filled with computers, mobile phones, satellite
TV, iPods and iPads, and online social media.
47
How do millennials engage with brands, and why is this significant?
Millennials are comfortable with digital technology and engage with brands through mobile devices and social media. This is significant because it marks a shift in how consumers interact with brands compared to previous generations.
48
What percentage of millennials prefer online shopping and mobile banking?
75% of millennials prefer shopping online, either via mobile or laptop. 92% of them prefer doing their banking through a web or mobile device.
49
What do millennials seek from brands, and how does this influence marketing?
Millennials seek authenticity, value, and opportunities to shape their own brand experiences. This influences marketers to offer content that is efficient, digestible, and engaging. Compared with other generational groups, they tend to be frugal, practical, connected,mobile, and impatient.
50
How do millennials typically interact with brands in comparison to other generations?
Millennials are open to connecting with brands, drawn to bite-size content (paid or not), and intrigued by new information, product-wise,”
notes one analyst
51
What are examples of brands who are now fielding specific products and marketing campaigns aimed
at millennial needs and lifestyles?
Many financial services firms are shedding their stodgy images and tailoring their brands to be more appealing to mobile-first millennial consumers.
Lululemon targeted millennials by building a community around its brand, resonating with their values and lifestyle preferences.
52
What is Generation Z?
People born after 1997 who include
the kid, tween, and teen markets.
53
What years were Gen Z born in and how many are there in Canada?
1998-2016
Almost 8.6 million Gen Z (almost 1/4 of Canada's population)
54
What stage of their life are Gen Z at now and how much do they spend?
The oldest of this market is now entering adulthood. One U.S. study estimated that Generation Z spends an estimated US$43 billion to US$143 billion annually of their own money and influences up to US$333 billion of family spending.
55
Why is Gen Z important for marketers?
These young consumers also represent tomorrow’s markets—they are now forming brand relationships that will affect their buying well into the future.
56
What is the defining characteristic of Generation Z, and how does it impact their daily lives?
The defining characteristic of Generation Z is their fluency with digital technologies. They have grown up with smartphones, tablets, Wi-Fi, and social media, making them highly mobile, connected, and social. They are always online, blending the online and offline worlds seamlessly.
57
How do Generation Z shoppers approach product research and purchasing decisions?
More than half of Generation Z’s tweens and teens conduct product research before buying or having their parents purchase items. Some 39 percent of Gen Zer girls find shopping inspiration from social media, 35 percent read newsletters from brands, and 33 percent don’t mind when brands work with influencers they like
58
What are the preferences of Generation Z when it comes to shopping online?
More than half of Generation Z prefers shopping online for various categories, including electronics, books, music, sports equipment, beauty products, clothes, shoes, and fashion accessories.
59
What challenges do companies face when marketing to Generation Z and their parents?
Marketing to Generation Z presents challenges due to their preference for online and mobile worlds, while still relying on traditional media. Marketers must engage this group where they hang out and shop, primarily on social media platforms and digital spaces, while also addressing their parents' purchasing influence.
60
How important is social media for marketing to older Generation Zers?
Social media plays a crucial marketing role for older Gen Zers, who engage with platforms like Snapchat, Instagram, and Periscope. These platforms are central to connecting with this group, despite the younger Gen Zers being restricted from such social media.
61
How can brands engage Generation Z consumers more deeply?
Today’s youth are notoriously fickle and hard to pin down. The key is to engage these young consumers and let them help to define their brand experiences. For example, to engage young consumers more deeply, The
North Face even invited them to help design its outdoor apparel and gear.
62
What is an important Gen Z marketing concern?
Involves children’s privacy and their vulnerability to marketing pitches. Companies marketing to this group
must do so responsibly or risk the wrath of parents and public-policy makers.
63
Do brands need to create separate products and marketing programs for each generation?
While some experts warn that marketers should avoid alienating one generation when targeting another, others suggest that segments within a generation, such as different age groups within Generation Z, require distinct approaches. It’s crucial to target consumers based on lifestyle, life stage, and shared values, rather than simply their birth date.
64
What is a more effective strategy than defining people solely by their birth date for generational marketing?
A more effective strategy involves segmenting people based on lifestyle, life stage, or the common values they seek in products.
65
What is the "traditional household"?
Traditional household consists of a hus-band, wife, and children (and sometimes grandparents). Yet the historic Canadian ideal of the two-child, two-car suburban family is far from accurate these days.
66
How is the traditional Canadian family structure changing?
- The 2016 Census revealed a decline in the ideal "two-child, two-car suburban family."
- There's a rise in “crowded nest” syndrome, with 35% of young Canadians aged 20 to 34 living with at least one parent.
67
What is the trend with Canadian households living alone?
- In 2016, nearly 28% (4 million ppl) of Canadian households were single-person households.
- This is up from 1.7 million in 1981, making it the most common type of household in Canada, surpassing couples with children.
68
What is happening with couples living without children in Canada?
- From 2011 to 2016, the number of couples without children increased by 7.2%, while couples with children only grew by 2.3%.
- As a result, the share of couples living with at least one child fell to 51.1 percent in 2016—the lowest
level on record.
69
What types of diverse family structures have grown in Canada?
Growth in common-law marriages, same-sex couples, and blended families is noticeable.
Example: Modern Family
Marketers must consider the special needs of nontraditional households
because they are now growing more rapidly than traditional households. Each group has distinctive needs and buying habits
70
How is the responsibility for household tasks and care of children changing in Canadian families?
More families are becoming dual-income households as women enter the workforce in greater numbers.
71
What is the trend regarding working women in Canada?
The number of working women has grown from 45% of the Canadian workforce in 1991 to 48% in 2016.
72
What percentage of women aged 25 to 54 were working outside the home in 2015?
In 2015, 82% of women aged 25 to 54 worked outside the home, up from 65% in 1983.
73
How have companies adapted their marketing to reflect changes in the dynamics of Canadian families?
Companies have begun to adjust their marketing to better reflect changing family roles. This includes recognizing and portraying fathers as caring and capable parents rather than the traditional, stereotypical images.
74
How were fathers typically portrayed in family-oriented ads in the past?
In the past, fathers were often either ignored or portrayed as bumbling and clueless in family-oriented ads, reinforcing outdated stereotypes of fatherhood.
75
How did Georgia-Pacific's Angel Soft brand commercial portray a caring father?
Georgia-Pacific’s Angel Soft commercial featured a single father raising his daughter from infancy to young adulthood, showing him as both sensitive and capable while navigating the challenges of parenthood.
76
How are ads reflecting the evolving diversity in modern Canadian households?
Ads are increasingly showcasing diverse family structures, such as same-sex couples and interracial families, to reflect the changing composition of modern Canadian households.
Example: Campbell's "Luke I am your father" and Cheerios interracial couple and daughter
77
What was the population growth rate in Canada between 2015 and 2019?
The population of Canada grew by approximately 4.7% between 2015 and 2019.
78
Did all provinces and territories in Canada experience uniform population growth?
No, the growth rates varied across provinces and territories, with some of Canada’s smallest provinces and territories experiencing the largest growth.
79
Which regions of Canada experienced growth rates near the national average?
Central and western Canada experienced growth rates near the national average.
80
Which province experienced a population decline between 2015 and 2019?
Newfoundland and Labrador experienced a decline in population during this time period.
81
What factors drive interprovincial migration in Canada?
Interprovincial migration is driven by differences in unemployment rates and wages.
82
What caused many Canadians to move to Alberta for several years?
The oil boom in Alberta attracted many Canadians to move westward.
83
What happened to the migration pattern in Alberta between 2015 and 2017?
Between 2015 and 2017, Alberta experienced a negative interprovincial migration flow, with many residents moving to British Columbia or Ontario.
n late 2018, the migration pattern shifted, and more Canadians began moving back to Alberta.
84
Why has Alberta’s population growth remained strong despite migration patterns?
Alberta’s population growth has remained strong due to international immigration growth.
85
Which provinces experienced gains in interprovincial migration in 2015/2016?
Three of the four Atlantic provinces posted gains in interprovincial migration during 2015/2016.
86
Which provinces experienced losses in interprovincial migration during this period?
Quebec, Manitoba, and Saskatchewan posted losses in interprovincial migration during this period.
87
What does Statistics Canada call the combination of urban and suburban populations?
These combinations are called Census Metropolitan Areas (CMAs).
88
What percentage of Canadians lived in one of Canada’s 36 CMAs as of July 2018?
7 in 10 Canadians, or 26.5 million people, lived in one of Canada’s 36 CMAs.
The three largest CMAs—Toronto, Montreal, and Vancouver—accounted for 35.7 per-cent of the total Canadian population.
89
Which regions had the fastest-growing CMAs between 2017 and 2018?
The five fastest-growing CMAs were located in Ontario, breaking with
the recent trend of high growth in the western provinces. The high-est growth CMAs included Peterborough, Kitchener– Cambridge–
Waterloo, Ottawa–Gatineau, Windsor, and London.
90
What shift in work patterns has resulted from the migration to micropolitan and suburban areas?
The migration has led to a rapid increase in the number of people who telecommute, working remotely at home or in remote offices.
43 percent of employed North Americans spend at least some time working remotely.
91
How do marketers actively court the lucrative telecommuting
market?
Online applications such as Citrix’s GoTo-Meeting and Cisco’s WebEx help people who telecommute or work remotely connect. And companies ranging from Salesforce.com to Google, IBM, and
Slack offer cloud computing applications that let people collaborate from anywhere and everywhere through the internet and mobile devices
92
How do marketers court telecommuters who can't fully work from home?
Companies such as ShareDesk, DaVinci, and Staples rent out fully equipped shared office space. For a
daily, monthly, or yearly fee, telecommuters who work away from a main office can rent shared space that includes the same amenities of a regular office, from networked computers, printers, and copiers to conference rooms and lounge spaces.
93
What are stats supporting the Canadian population becoming better educated?
Statistics Canada reported that in 2016, 54% of Canadians aged 25 to 64 had completed post- secondary education (university or college). An additional 10.8% of Canadians
had an apprenticeship or other trades certificate. Canada continues to rank first among the Organisation for Economic Co-operation and Development (OECD) countries in
the proportion of college and university graduates.
94
What is the result of the rising number of educated professionals?
Rising number of educated
professionals affects not just what people buy but also how they buy.
95
What factors make Canada and the U.S. unique in terms of ethnic and racial makeup?
Both countries have a diverse population with various ethnic groups that have mixed together while still maintaining and valuing cultural differences.
96
How does Canada and the U.S. unique ethnic and racial makeup affect marketers?
Marketers now face increasingly diverse markets, both at home
and abroad, as their operations become more international in scope.
97
How has the ethnic composition of Canada changed according to the most recent census?
French and British Isles origins are still the most common reported by Canadians, their share of in the total population has decreased substantially
4/10 Canadians reported more than one ethnic origin
Over 2 million Canadians reported
Indigenous ancestry, while three Asian origins (Chinese, East Indian, and Filipino) were among the 20 most common ancestries reported by the Canadian population. Over 1 million Canadians also reported African origins
98
What does the increasing ethnic diversity in Canada mean for marketers?
Most large companies, from P&G, Walmart, and McDonald’s to Toyota and Marriott, now target specially designed products, ads, and promotions to one or all of these diverse groups. For example, consider Marriott: As part of its #LoveTravels campaign, Marriott launched a social media effort targeted specifically at Hispanic consumers. In a YouTube video series, Hispanic stars shared inspiring stories about their pride in heritage and related what travel means to them.
99
How has the LGBT community's buying power been estimated in the U.S.?
Diversity goes beyond ethnic heritage. For example, many major companies explicitly target gay and lesbian consumers. According to one estimate, the 7 percent of U.S. adults who identify themselves as lesbian, gay, bisexual, or transgender (LGBT)
have buying power of nearly US$1 trillion.
100
What does the Canadian Community Health Survey reveal about sexual orientation?
It suggests that approximately 3% of Canadians aged 18 to 59 identify as homosexual or bisexual.
101
How prevalent were same-sex couples in Canada according to the 2016 Census?
The 2016 Census reported 72,880 same-sex couples in Canada, representing 0.9% of all couples.
102
How has media representation affected the visibility of the LGBT community?
TV shows like Modern Family, Transparent, and Gotham, as well as movies like Brokeback Mountain and Carol, have helped increase the visibility of the LGBT community, along with openly gay public figures: Neil Patrick Harris, Ellen DeGeneres, David Sedaris, and Apple CEO Tim Cook
103
What is the broader queer community recognized by the Government of Canada?
The Government of Canada recognizes the broader community as LGBTQ2, which stands for Lesbian, Gay, Bisexual, Transgender, Queer, and Two-Spirit.
104
What actions has the Canadian government taken to support the LGBTQ2 community?
The Canadian government promotes human rights and develops inclusive federal policies, programs, and laws to improve equality for LGBTQ2 members.
105
What symbolic gesture did the Royal Canadian Mint make in 2019?
In 2019, the Royal Canadian Mint launched a one-dollar commemorative coin to mark the fiftieth anniversary of the decriminalization of homosexual acts between consenting adults in Canada.
106
What are some examples of brands in a wide range of industries are now targeting the LGBTQ2 community
with specific ads and marketing efforts?
Macy’s and Best Buy run regular
ads for their wedding registries featuring same-sex couples
Starbucks recently ran a
holiday ad showing a same-sex couple leaning in for a kiss while holding a Starbucks
cup together.
Frito-Lay launched a limited-edition Doritos Rainbows, multicoloured
chips demonstrating the brand’s “expression of inclusion and support for individuality.”
107
What is the estimated annual spending power of individuals with disabilities in the U.S.?
Individuals with disabilities in the U.S. have an estimated annual spending power ranging from US$200 to US$550 billion.
108
How many Canadians aged 15 and over are living with a disability?
Approximately 6.2 million Canadians aged 15 and over live with a disability.
109
What is one example of how most individuals with disabilities are active consumers?
Individuals with disabilities spend US$17.3 billion on 73 million business or leisure trips every year.
110
Which brands have featured people with disabilities in their marketing?
Many marketers now recognize that the worlds of people with dis-abilities and those without disabilities are one and the same. Marketers such as McDonald’s, Nike, Samsung, Nordstrom, Toyota, and Apple have
featured people with disabilities in their mainstream marketing.
111
What is an example of brands targeting consumers with disabilities?
Toyota’s “Start Your Impossible”
campaign included ads highlighting
inspirational real-life stories of athletes who overcame mobility challenges, such as Canadian Paralympic gold medalist alpine skier Lauren Woolstencroft.
112
As the population in Canada grows more diverse why do successful marketers will continue to diversify their marketing programs?
To take advantage of opportunities in fast-growing segments.
113
What is the natural environment?
The physical environment and the
natural resources that are needed
as inputs by marketers or that are
affected by marketing activities.
114
At the most basic level how can unexpected happenings in the physical environment affect companies and their marketing strategies?
Anything from weather to natural disasters can affect companies and their marketing strategies. Ex. during a recent cold winter sales suffered across a wide range of businesses, from florists and auto dealers to restaurants, airlines, and tourist destinations. In contrast, the severe weather boosted demand for products such as salt, snowblowers, winter clothing, and auto repair centres.
115
Companies can't prevent natural occurrences but how can they prepare?
For example, shipping companies such as FedEx and UPS maintain corps of meteorologists on their staffs to anticipate weather conditions that might inhibit on-time deliveries around the world. “Someone awaiting a package in
Bangkok doesn’t care if it snowed in Louisville, Kentucky,” says a UPS meteorologist. “They want their stuff.”
116
How have environmental sustainability concerns changed?
At a broader level concerns have grown steadily over the past several decades. In many cities around the world, air and water pollution have reached dangerous levels. World concern continues to mount about the possibilities of global warming, and many environmentalists fear that we soon will be buried in our own trash
117
What are the 3 trends in the natural environment marketers should be aware of?
1. Shortages of raw materials
2. Increased pollution
3. Increased government intervention
118
Why might air and water be at risk despite being renewable resources?
Air pollution affects large cities, and water shortages are a growing issue, with projections suggesting more than one in three people globally may lack sufficient water by 2030.
119
How must renewable resources like forests and food be managed?
They must be used wisely to ensure sustainability.
120
What challenges do companies face regarding nonrenewable resources?
Nonrenewable resources, such as oil, coal, and various minerals, pose a serious problem. Firms making products that require these scarce resources face large cost
increases even if the materials remain available
121
What environmental issue is associated with industrial activity?
Increased pollution. Industry will almost always damage the quality of the natural environment
122
What are examples of pollution caused by industry?
Disposal of chemical and nuclear wastes
Dangerous mercury levels in the ocean
Quantity of chemical pollutants in the soil and food supply
Littering of the environment with non-biodegradable bottles, plastics, and other packaging materials
123
How do governments differ in their approach to environmental quality?
Some, like Germany, actively pursue environmental quality, while others, particularly poorer nations, do little.
124
Why might poorer nations struggle to address pollution issues?
They often lack the necessary funds or political will.
125
What is the Environmental Protection Act that Canada passed in 1989?
This act established stringent pollution-control measures as well as the means for their enforcement, including fines as high as $1 million if regulations are violated.
126
What environmental effort did Canada implement in 2019?
Introduced a controversial carbon tax to help reduce carbon emissions.
127
How do government environmental efforts affect businesses?
Environmental efforts, such as the Environmental Protection Agency (EPA) started in 1970 by the US, create and enforce pollution standards and conduct pollution
research. Companies doing business in the United States can expect continued strong controls from government and pressure groups
128
What do marketers now do instead of opposing environmental regulations?
Many marketers are now helping to develop solutions to the materials and energy problems facing the world.
129
What is environmental sustainability?
Spawned from concern for the natural environment:
Developing strategies and practices that create a world economy
that the planet can support
indefinitely.
130
What is the goal of environmental sustainability movements?
Environmental sustainability means meeting present needs without compromising the ability of future generations to meet their needs
131
How are companies responding to consumer demands for environmental responsibility?
By creating environmentally responsible products, recyclable or biodegradable packaging, and improving pollution control and energy efficiency.
132
What role has Walmart played in the environmental sustainability movement?
It has become a leader by implementing its own sustainability actions and influencing supplier practices (asking them to examine the carbon life cycles of their products and rethink how they source, manufacture, package, and transport these goods), earning the title of "eco-nanny."
133
How can environmental sustainability benefit businesses?
More than "just doing the right thing", leads to more efficient operations, less waste, and financial savings, which can then be passed on to customers (lower prices)
134
How are other businesses making environmental sustainability part of their core mission?
Looking to do more than just good deeds. Patagonia donates 1% of its revenue annually to environmental causes and adheres fiercely to a “Five Rs” mantra: “reduce, repair, reuse, recycle, and reimagine.” “Reimagine a world where we
take only what nature can replace.”
135
What is political environment?
Laws, government agencies, and
pressure groups that influence and
limit various organizations and
individuals in a given society.
136
To what degree are marketing decisions affected by the political environment?
Marketing decisions are strongly affected by developments in the political environment.
137
Why can written regulations not fully prevent marketing abuses?
They cannot cover all potential situations and are often difficult to enforce.
138
What governs business practices beyond written laws and regulations?
Social codes and rules of professional ethics.
139
What approach do enlightened companies take toward regulations?
They encourage managers to go beyond regulations and "do the right thing."
140
What do socially responsible firms aim to protect?
Seek out ways to protect the long-run interests of their consumers and the environment
141
Why do ethical and social-responsibility issues arise in marketing?
Almost every aspect of marketing involves ethical and social-responsibility issues. Unfortunately, because these issues usually involve conflicting interests, well-meaning
people can honestly disagree about the right course of action in a given situation.
142
How do trade associations help with ethical marketing?
They suggest codes of ethics to guide marketers in their decisions.
143
What are some steps companies are taking to address social-responsibility issues?
Companies are developing policies, guidelines, and other responses to complex social-responsibility issues.
144
How has the boom in online, mobile, and social media marketing created a new set of social and ethical issues?
Critics worry most about online privacy issues. Explosion in the amount of personal digital data available. Users themselves
supply some of it. Voluntarily place highly private information on social media sites (Facebook, LinkedIn, genealogy sites) that are easily searched by anyone with a computer or a smartphone
145
How do businesses use consumer data?
Most information is systematically developed by businesses seeking to learn more about their customers. Businesses track online browsing and buying behaviour to collect, analyze, and share digital data.
146
Why do critics worry about businesses collecting digital data?
Critics worry that companies may know too much about consumers and could use this information to take unfair advantage.
147
Do consumers usually realize that their online activity is being tracked?
No, consumers often don't realize they are being closely monitored while browsing and shopping online.
148
How do abuses occur with consumer data?
Although most companies fully disclose their internet privacy policies and most try to use data to benefit their customers data breaches of major companies such as Facebook, Yahoo!, credit agency Equifax, Target, Uber, Sony, and many others have threatened the privacy of hundreds of millions or even billions of individuals.
149
How are companies responding to data security concerns?
Companies are tightening their data security and public-policy makers are acting to protect consumer privacy.
150
What is cause-related marketing?
Cause-related marketing involves companies linking themselves to social or charitable causes to enhance their image and social responsibility.
151
What is an example of a company supporting a cause related to texting-while-driving?
AT&T partnered with Verizon, Sprint, and T-Mobile to launch the “It Can Wait” campaign, which encourages people to pledge not to text and drive.
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What does the term "values-led business" or "caring capitalism" refer to?
"Values-led business" or "caring capitalism" refers to companies that focus on using business to improve the world, as seen with Ben & Jerry's approach to social responsibility.
The company is committed to using wholesome, natural, non-GMO, fair-trade-certified ingredients and buys from local farms + more
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Why has cause-related marketing become a primary focus of corporate giving?
Cause-related marketing allows companies to “do well by doing good” by linking their products or services to charitable causes, benefiting both the company and society.
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How does cause-related marketing benefit companies economically?
Cause-related marketing can improve a company’s image and sales, as seen with Ben & Jerry’s, which is the second-largest ice cream brand in America, with close to half a billion dollars in annual sales.
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What is the impact of Whirlpool’s Care Counts program?
Whirlpool’s Care Counts (putting washer and dryers in schools so kids can clean their clothes) program not only boosted school attendance but also improved the company’s image, generating 350 million media impressions and over 12 million video views across Facebook and YouTube, leading to a significant increase in purchase intent.
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What is the main criticism of cause-related marketing?
Critics argue that cause-related marketing is often more focused on selling products than genuinely supporting a cause, calling it “cause-exploitative” marketing.
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What is the risk companies face with cause-related marketing?
Companies risk being perceived as inauthentic or exploitative if they focus too much on selling products rather than genuinely supporting the cause, which could damage their public image.
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How can companies benefit from cause-related marketing if handled properly?
However, if handled well, cause-related marketing can greatly benefit both the company and the cause. The company gains an effective marketing tool while building a more positive public image. The charitable organization or cause gains greater visibility and important new sources of funding and support.
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How has spending on cause-related marketing changed over time?
Spending on cause-related marketing in the U.S. has grown significantly, from US$120 million in 1990 to over US$2 billion in 2018.
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What are the three kinds of companies described in the quote?
1. Those who make things happen
2. Those who watch things happen
3. Those who wonder what’s happened.
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How do some companies view the marketing environment?
Some companies view the marketing environment as an uncontrollable element that they must react to and adapt, accepting it passively.
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What strategy do companies that react to the environment typically use?
These companies analyze environmental forces and design strategies to avoid threats and take advantage of the opportunities the environment provides.
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What stance do some companies (who don't just wait and react) take toward the marketing environment?
Some companies take a proactive stance, developing strategies to change the environment rather than just reacting to it.
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What is the goal of proactive companies in the marketing environment?
The goal of proactive companies is to create and shape new industries and their structures.
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Can you name some products that have created or shaped new industries?
Examples include Ford’s Model T car, Apple’s iPod and iPhone, Google’s search engine, and Amazon’s online marketplace.
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What actions do proactive firms take to affect their marketing environment?
Rather than simply watching and reacting to environmental events,
proactive firms take aggressive actions to affect the publics and forces in their market-ing environment
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How do proactive companies influence legislation and public opinion?
Such companies hire lobbyists to influence legislation affecting their
industries and stage media events to gain favourable press coverage. They take to the social media and run blogs to shape public opinion
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How do proactive companies manage competition and distribution channels?
They press lawsuits and file com-plaints with regulators to keep competitors in line, and they form contractual agreements to better control their distribution channels.
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How can companies overcome uncontrollable environmental events?
Companies can overcome uncontrollable events by taking proactive action, such as countering false information or addressing negative publicity directly.
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What example illustrates how a company proactively responded to a negative event?
Newell Rubbermaid’s Crock-Pot brand countered a false portrayal of its product as a fire hazard after a hit TV show spread misinformation.
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Why can marketing management not always control environmental forces?
Marketing management cannot always control environmental forces because some factors, like geographic population shifts, the economic environment, or major cultural values, are beyond the company's influence.
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What approach do smart marketing managers take to the marketing environment?
Whenever possible, smart marketing managers take a proactive rather than reactive approach to the market-ing environment
