Marketing Exam 1, Ch. 3
Terms
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- Environmental scanning
- Process used to collect information about market trends
- Social forces
- Demographic characteristics about a population and its value
- Demographics
- Describing populations based on factual characteristics
- Baby boomers
- 1946-1964: Interested in health, wellness, appearance
- Generation X
- 1965-1976: Self-reliant and supportive of diversity, well-educated
- Generation Y
- 1977-1994: Technology fiends, younger members are millenials
- Metropolitan statistical area
- At least one urbanized area (50,000+) and adjacent area of high economic/social integration
- Micropolitan statistical area
- At least one urban cluster (10,000-50,000) and adjacent area of high economic/social integration
- Culture
- Set of values, ideas, and attitudes that are learned and shared among members of a group
- Economic forces
- Income, expenditures, resources that influence cost of running a business or household
- Gross income
- Total amount of money made by a person or family unit in one year
- Disposable income
- Money a consumer has left over after taxes to use for necessities
- Discretionary income
- Money that remains after taxes and necessities
- Technological forces
- Inventions or innovations from applies science and engineering research
- Pure competition
- Many sellers with similar products
- Monopolistic competition
- Many sellers compete with slightly differentiated products
- Oligopoly
- A few companies control the majority of industry sales
- Pure monopoly
- When only one firm sells a product
- Components to competition
- 1. Entry barriers 2. Power of buyers and sellers 3. Existing competitors/substitues
- Sherman Anti-Trust Act
- 1890; made monopoly formation illegal and forbade collusion between companies
- Clayton Act
- 1914; supplement to the Sherman Act, forbids any action that lessens competition significantly
- Robinson-Patman Act
- 1936; price discrimination is illegal when it lessens competition
- Digital Millenium Copyright Act
- 1998; improves protection of copyrighted material
- Consumerism
- 1960s; movement to increase consumer rights in dealing with institutions
- Lanham Act
- 1946; provides for registration of a company's trademarks unless the word/phrase becomes generalized (ex: escalator)
- Exclusive dealing
- When a manufacturer arranges for a reseller to handle only its products
- Requirement contracts
- When a buyer must purchase all or part of its products from one seller
- Tying arrangements
- When a seller requires a purchaser of one product to also buy another product