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59 Cards in this Set
- Front
- Back
Baby Boomers
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76 million people (26% of the current population) born between 1946 and 1964; the wealthiest generation in US history. Interested in health, fitness, retirement housing, financial planning.
2nd baby boom: younger than 19 years old. |
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Barriers to Entry
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Business practices or conditions that make it difficult for new firms to enter the market.
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Better Business Bureau
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A system of nongovernmental, independent, local regulatory agencies supported by local businesses that helps settle problems between customers and specific business firms.
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Blended Family
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Formed by merging two previously separated units into a single household. 1/3 of all Americans are members of a blended family.
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Brand Competitors
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Firms that market products with similar features and benefits to the same customers at similar prices.
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Business Cycle
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A pattern of economic fluctuations that has four stages: prosperity, recession, depression, and recovery.
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Business Portfolio Analysis
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A method of categorizing a firm's products according to their relative competitive position and business growth rate in order to lay the foundations for sound strategic planning.
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Buying Power
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Resources, such as money, goods, and services, that can be traded in an exchange.
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Competition
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Other organizations that market products that are similar to or can be substituted for a marketer's products in the same geographical area.
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Consumerism
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Organized grassroots efforts by individuals, groups, and organizations to protect consumers' rights using tools like letter campaigns, lobbying, PSAs, and boycotting.
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Demographics
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Characteristics of a population, including age, gender, race, ethnicity, income, education, etc.
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Depression
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A stage of the business cycle when unemployment is extremely high, wages are very low, total disposable income is at a minimum, and consumers lack confidence in the economy.
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Discretionary Income
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Disposable income available for spending and saving after an individual has purchased the basic necessities of food, clothing, and shelter. Usually spent on entertainment, education, cars, electronics, etc.
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Disposable Income
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After-tax income used for spending or saving.
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Diversification Analysis
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Diversification analysis is a technique that helps a firm search for growth opportunities from among current and new markets as well as current and new products. For any market, there is both a current product and a new product and for any product there is both a current market and a new market.
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Diversification Strategy
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A product diversification strategy is a form of business development. Small businesses that implement the strategy can diversify their product range by modifying existing products or adding new products to the range. The strategy provides opportunities to grow the business by increasing sales to existing customers or entering new markets.
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Economy
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Income, expenditures, and resources that affect the cost of running a business or household.
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Electronic Commerce
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Any activity that uses some form of electronic communication in the inventory, exchange, advertisement, distribution, and payment of goods and services.
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Environmental Scanning
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The process of collecting information about forces in the marketing environment through observation and marketing research allowing companies to take advantage of current trends. The components of an environmental scan are culture, demographics, social, technological, economic, and political / regulatory.
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Exclusive Dealing
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An arrangement a manufacturer makes with a reseller to handle only its products and not those of competitors.
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Exclusive Territorial Distributorship (Exclusive Geographical Territories)
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A manufacture grants a distributor the sole rights to sell a product in a specific geographical area.
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Extranet
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Use internet-based technologies, permit communication between a company and its suppliers, distributors, and other partners.
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Federal Communications Commission (FCC)
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Regulates communication by wire, radio, and television in interstate and foreign commerce.
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Generation X (Baby Busters)
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The generation following baby boomers; born between 1965 and 1976; 15% of the current population. Self-reliant, support diversity, better educated.
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Generation Y
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72 million Americans born between 1977 and 1994 (children of baby boomers or "echo boom"). Exert influence on music, sports, computers, video games, communication, and networking.
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Generational Marketing
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Based on the premise that marketers must understand the underlying drives associated with different generations and how those generations interact with each other to be able to effectively market to them.
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Generic Competitors
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Firms that provide very different products that solve the same problem or satisfy the same basic customer need.
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Gross Income
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The total amount of money made in one year by a person, household, or family unit.
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Income
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The amount of money received through wages, rents, investments, pensions, and subsidy payments for a given time period, including cash, securities, real estate, etc.
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Inflation
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The general rate of price increases. Inflation causes the decline of purchasing power.
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Intranet
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An internet-based network used within the boundaries of an organization. A private network that may or may not be connected to the public internet.
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Market Development Strategy |
Market development is a marketing strategy to sell current products to new markets. There is good and bad news with this; the company may sell more products but their name is unknown in the new market. |
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Market Penetration Strategy
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Market penetration is a marketing strategy to increase sales of current products in current markets. There is no change in either the basic product line or the markets served. Increased sales are generated by selling either more of the product/service or the same amount of the product/service at a higher price to its current customer.
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Marketspace
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Electronic exchange environment mostly occupied by sophisticated computer and telecommunications technologies and digitized offerings.
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Monopolistic Competition
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A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its product.
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Monopoly
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A competitive structure in which an organization offers a product that has no close substitutes, making that organization the sole source of supply.
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National Advertising Review Board (NARB)
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A self-regulatory unit that considers challenges to issues raised by the National Advertising Division (an arm of the Council of Better Business Bureaus) about an advertisement.
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Oligopoly
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A competitive structure in which a few sellers control the supply of a large proportion of a product.
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Patent Law
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To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries. Under current U.S. law, the term of patent is 20 years from the earliest claimed filing date.
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Product Competition
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Firms that compete in the same product class but market products with different features, benefits, and prices.
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Product Development Strategy
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Product development may involve modification of an existing product or its presentation, or formulation of an entirely new product that satisfies a newly defined customer want or market niche.
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Recession
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A stage of the business cycle during which unemployment rises and total buying power declines, stifling both consumer and business spending.
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Recovery
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A stage of the business cycle in the economy moves from recession or depression toward prosperity.
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Regulation
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Restrictions that state and federal laws place on business with regard to the conduct of its activities.
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Self-Regulation
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An industry attempts to police itself (e.g., the BBB).
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Sherman Antitrust Act (1890)
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Prohibits contracts, combinations, or conspiracies to restrain trade; establishes as a misdemeanor monopolizing or attempting to monopolize.
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Social Forces (Sociocultural Forces)
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The influences in a society and its culture(s) that change people's attitudes, beliefs, norms, customs, and lifestyles. These forces help determine what, where, how, and when people buy products.
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Technology
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The application of knowledge and tools to solve problems and perform tasks more efficiently. Inventions or innovations from applied science or engineering research.
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Total Budget Competition
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Firms that compete for the limited financial resources of the same customers.
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Tying Arrangement
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A seller requires the purchaser of one product to also buy another item in the line.
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Value Consciousness
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The concern for obtaining the best quality, features, and performance of a product or service for a given price.
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Wealth
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The accumulation of past income, natural resources, and financial resources.
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Willingness to Spend
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An inclination to buy because of expected satisfaction from a product, influenced by the ability to buy and numerous psychological and social forces.
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Environmental Analysis
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The process of assessing and interpreting the information gathered through environmental scanning, then developing future marketing strategies.
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Pure Competition
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A market structure characterized by an extremely large number of sellers, each with a similar product, none strong enough to significantly influence price or supply.
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Prosperity
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A stage of the business cycle characterized by low unemployment and relatively high total income, which together ensure high buying power, provided the inflation rate stays low.
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Federal Trade Commission
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An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling.
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Federal Trade Commission
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An agency that regulates a variety of business practices and curbs false advertising, misleading pricing, and deceptive packaging and labeling.
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Culture
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The set of values, ideas, and attitudes that are learned and shared among members of a group.
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