Engr 191A Quiz 2 Study Guide

Engr 191A Quiz 2 Study Guide - Marketing Environment o...

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Marketing Environment o Environmental Scanning : the process of collecting information about the forces in the marketing environment Scanning Process Observation Secondary Sources o Business o Trade o Government o General-interest publications o Marketing Research Caution o Know how to use information Timing Maneuver an advantage o Don’t gather too much information o Responding to Environmental Forces These forces are cannot be controlled (i.e. government, consumers, culture, etc.) Must adapt to changes Attempt to influence and change i.e. Car industry responding to new demands for “green” cars o Competition Brand competitors Arrowhead, Sparkletts, Evian, Dasani, etc. Product competitors
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Iphone vs Droid Generic competitors Kmart, Kirkland, etc Total Budget competitors o Monitoring Competition Price Do more than analyze information Act on information, think about how competition will respond, how will your consumers feel Develop a system for collecting information Understand the customers needs Recognize flaws in strategy, be objective, compare o Economic Forces Economic Conditions Recessions, Large Growth Buying Power o Consumers, Competition, Yourself Willingness to Spend o Consumers, competition, yourself The Business Cycle Prosperity Recession Depression Recovery Buying Power Disposable Income
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o Gross Income - Taxes Discretionary Income o Gross Income – Taxes – Necessary Expenses (Rent, etc) Wealth Willingness to spend – an inclination to buy because of expected satisfaction from a product, influenced by the ability to buy (wealth) and numerous social (culture) and psychological (emotion) forces o Political Forces Legislation enacted Legal decisions interpreted by courts Regulatory agencies created and operated Marketers o Adjust to conditions o Influence through contributions o Legal and Regulatory Forces Precompetitive Legislation – preserves competition Consumer Protection legislation Protects people from harm, (hazardous products, information disclosure, unsavory marketing practices) Encourage compliance Regulatory Agencies Self-regulatory forces o Federal Trade Commission Enforcement Tools Cease and Desist order – a court order to a business to stop engaging in an illegal practice
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Consent Decree – an order for a business to stop engaging in questionable activities to avoid prosecution Redress – money paid to customer to settle or resolve complaint Corrective Advertising – a requirement that a business make a new advertisement to correct information Civil Penalties – court ordered civil fines for up to $10,000 per day for violating a cease-and-desist order o Self-Regulatory Forces Trade Associations Better Business Bureau National Advertising Review Board Advantages: Less expensive and more realistic
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Engr 191A Quiz 2 Study Guide - Marketing Environment o...

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