Term
|
Definition
| The organization's basic purpose of being. |
|
|
Term
|
Definition
| The number and types of competitors a company faces and how they may behave. |
|
|
Term
|
Definition
| An organized approach for evaluating the strengths and weaknesses of current or potential competitors' marketing strategies. |
|
|
Term
|
Definition
| The closest competitors to a firm. Usually these are firms with similar products, but could also be a firm that serves the same target market with a different product. |
|
|
Term
|
Definition
| The conditions that may make it difficult, or even impossible, for a firm to compete in a market. |
|
|
Term
|
Definition
| Macro-economic fators, including national income, economic growth, and inflation, that affect patterns of consumer and business spending. |
|
|
Term
|
Definition
| Application of science to convert an economy's resources to output. |
|
|
Term
|
Definition
| An emphasis on a country's interests before everything else. |
|
|
Term
| North American Free Trade Agreement (NAFTA) |
|
Definition
| Free-trade pact between U.S., Canada, and Mexico. |
|
|
Term
| Cultural and Social Environment |
|
Definition
| How and why people live and behave they way the do which affects customer buying behavior and eventually the economic, political, and legal environments. |
|
|
Term
| Gross Domestic Product (GDP) |
|
Definition
| 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. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| People born between 1946 and 1964. |
|
|
Term
|
Definition
| People born from 1965 to 1977. |
|
|
Term
|
Definition
| People born from 1978 to 1994. Called Millenials. |
|
|
Term
|
Definition
| Idea that it's important to meet present needs without compromising the ability of future generations to meet their own needs. |
|
|
Term
| Strategic Business Unit (SBU) |
|
Definition
| An organizational unit (within a larger company) that focuses on some product-markets and is treated as a separate profit center. |
|
|
Term
| What are the four major areas of the external market environment? |
|
Definition
| Economic environment, technological environment, political and legal environment, and cultural and social environment. |
|
|
Term
| What forces does the direct market environment consist of? |
|
Definition
| Customers, company, and competitors. |
|
|
Term
| What are 3 general objectives that a firm should have? |
|
Definition
(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. |
|
|
Term
| What are the different functional areas that should be evaluated to determine a firm's strengths and weaknesses? |
|
Definition
| Financial strength, production capability and flexibility, marketing strengths (4Ps), research, engineering, and general management. |
|
|
Term
| What are the 4 basic kinds of market (competitive) situations? |
|
Definition
| Pure competition, oligopoly, monopolistic competition, and monopoly. |
|
|
Term
| What are the steps of a competitor analysis? |
|
Definition
(1) Identify potential competitors,
(2) Identify competitive rivals,
(3) Seek information about competitors, |
|
|
Term
| How does technology affect marketing? |
|
Definition
| Opportunities for new products and for new processes (ways of doing things). |
|
|
Term
|
Definition
Monopoly or conspiracy in restraint of trade.
Prohibitions:
Product - Monopoly or conspiracy to control a product.
Place - Monopoly or conspiracy to control distribution channels.
Price - Monopoly or conspiracy to fix or control prices. |
|
|
Term
|
Definition
Substanially lessens competition.
Prohibitions:
Product - Forcing sale of some products with others (tying contracts).
Place - Exclusive dealing contracts (limiting buyers' sources of supply)
Price - Price discrimination by manufacturers |
|
|
Term
| Federal Trade Commission Act (1914) |
|
Definition
Unfair methods of competition.
Prohibitions:
Promotion - Deceptive ads or selling practices
Price - Deceptive pricing |
|
|
Term
| Robinson-Patman Act (1936) |
|
Definition
Tends to injure competition.
Prohibitions:
Promotion - Prohibits "fake" advertising allowances or discrimination in help offered.
Price - Prohibits price discrimination on goods of "like" grade and quality without cost justification, and limits quantity discounts. |
|
|
Term
| Wheeler-Lea Amendment (1938) |
|
Definition
Unfair or deceptive practices.
Prohibitions:
Product - Deceptive packaging or branding.
Promotion - Deceptive ads or selling claims.
Price - Deceptive pricing |
|
|
Term
|
Definition
Lessens competition.
Prohibits:
Product - buying competitors.
Place - buying producers or distributors. |
|
|
Term
|
Definition
Unreasonable practices.
Prohibits:
Product - product warranties. |
|
|
Term
| Gross National Income (GNI) |
|
Definition
| Similar to GDP, but doesn't include income earned by foreigners who own resources in that nation. |
|
|
Term
| What are examples of quantitative screening criteria? |
|
Definition
| Sales, profit, ROI, breakeven, number of products. |
|
|
